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Finances

Cash Flow Management Solutions

By Daniel

|

January 24, 2019

Business Financing

Money management is a vital part of keeping any business functioning efficiently, and ensuring you have sufficient cash flow is a primary concern of any business owner.

What is cash flow management?
Cash flow management is the analysis of the money entering and leaving your company.

Managing your cash flow involves staying on top of all the cash flow moving into and out of your business, and making sure you always have sufficient cash on hand to continue operating and paying your staff, suppliers and creditors on time. Cash flow management involves:

  • Tracking how much cash is flowing into and out of your business,
  • Monitoring how your cash flow changes over time and forecasting the potential impact on your business and its ability to grow,
  • Ensuring your customers and other debtors pay you on time, and
  • Ensuring you always have sufficient cash available to continue operating and delivering products or services to your customers on time.

Why is cash flow management important?
Without cash flow, you’ll struggle to pay your creditors and keep your business running smoothly. Businesses often run into serious issues when their cash flow runs out because they are unable to:

  • pay salaries and wages on time making employees nervous and start questioning the stability of the business and their job security,
  • buy raw materials needed to produce and sell more products to your customers to generate further revenue,
  • afford rent for the business premises which may result in eviction,
  • cover other operational expenses critical to the ongoing operation of a business, and
  • meet tax obligations, resulting in penalties and possible action from SARS.

If your cash flow is properly managed, you will be able to estimate the amount of money you have on hand at any given time, and you will be able to anticipate and solve potential problems arising ahead of time.

Cash flow management tools
There are a range of tools available to assist with cash flow management which can help a business quickly and easily gauge their cash flow situation.

If you have a small business with basic needs, you might consider a free platform that’s available online or as a part of other software packages. You may even be able to use a template in Excel or Google Documents to keep track. While these tools are simple, they may be all a small business needs to gain insight into their cash flow situation.

Cloud accounting software packages often also include some form of cash flow management tool that can keep an eye on your cash flow management, offering more complex analysis of your cash flow situation in real time.

Cash flow issues? Consider a cash flow management solution
If you find yourself constantly struggling to manage your cash flow, despite keeping a close eye on it, you may need a cash flow management solution that can provide you with cash on hand when you need it.

If you’re looking for cash flow financing activities that can help you ease your cash flow issues, Bridgement may be the perfect solution you’re looking for. Our innovative cash flow management system gives you access to the cash you need with just a few clicks.

How Bridgement works
Bridgement offers a revolving credit facility that you can use and reuse as and when you need it. Once approved for a facility, simply request a withdrawal from your Bridgement dashboard and funds will be in your account within minutes. In other words, you’ll have access to the cash you need whenever you’re under cash flow pressure or when you want to take on more projects to grow your business.

How to apply for a business loan from Bridgement
Part of what makes Bridgement‘s credit facilities so innovative is the incredibly simple online application process. There are no physical forms to fill out, and no need to submit supporting paperwork. You apply online in a matter of minutes and you’ll get approved in under 24 hours. With Bridgement, your cash flow crunch could be solved in a few hours.

Once approved, you can access your credit facility online and request a withdrawal for the funds you need. You’re always in control of how much you would like to borrow and the duration for which you borrow it.

How a Bridgement credit facility can improve the cash flow situation of your business
Bridgement’s revolving credit facility is a great solution to your cash flow management issues, allowing you to access finance without taking on long-term debt commitments. Withdrawals from your Bridgement credit facility can be paid off over 3 months, or if you prefer to settle early, you can settle the full amount and be rewarded with a discount. Such flexible repayments are unprecedented and you’ll be able to improve cash flow simply using your Bridgement online credit facility.

A revolving credit facility can give your business the freedom to take on bigger projects and more clients with longer payment terms, because you know that you can access the working capital you need through Bridgement. You may have had to shy away from big jobs in the past, as it would mean carrying a lot of costs for a long period of time, but with Bridgement, cash flow isn’t an issue.

Apply for Bridgement business financing
Proper cash flow management involves keeping track of all funds coming in and going out of your business. But even a business with a complete grasp on their cash flow situation can run into issues with cash on hand when debtors are slow to pay or large orders need to be filled. With Bridgement’s financing solution, you can improve your cash flow management process and put your cash flow issues behind you.

Why not apply for business finance from Bridgement right now to see how much you qualify for. It’s quick, easy and free to apply, and once you’ve been approved, you’re under no obligation to take out any finance with us. Try it today.

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