Every entrepreneur has heard the adage “cash flow is king”, and they know that effective cash flow management is essential for business survival. For your business to stay on route, it requires a strategy for day-to-day management as well as razor sharp focus on the specific financial areas of your business. This is especially true in tough economic times when external factors out of your control will impact your business.

Through understanding a business’ working capital cycle, it will assist an entrepreneur in identifying those specific areas of the business to focus on. If you can reduce the number of days it takes to collect money from your debtors, or stretch the terms you get from creditors when the pressure is on, you automatically enhance your business’ cash flow.

In an uncertain economic environment, there are added pressures on your debtors and creditors, which in turn can have a knock-on effect on your business if sound financial principles are not applied. The right banking partner can be your survival guide in tough times and help you find the right financing solution, to get your business back on route.

Great examples of survival tools are our Debtor and Stock financing solutions that help businesses pay suppliers while they wait for their debtors to pay them. Our working capital experts will tailor a funding solution using your debtors and stock to meet your unique financing needs. For more information e-mail debtor.finance@fnb.co.za and quote BTDF as a reference.