Topic 17 - Improving Cash Flow

Question 1

3 ways to improve inflows

Answer 1

Overdrafts / loans

Debt factoring

Reducing credit terms

Selling assets

Question 2

3 ways to improve by decreasing outflows

Answer 2

Delaying supplier payments

Leasing equipment

Delay spending on capital equipment

Question 3

Causes of cash flow problems

Answer 3

Lack of forecast planning
Poor credit control
Overtrading
Excessive stock
Low profits
Random economical changes