Finance strategies

Question 1

4 areas of financial management

Answer 1

1. Cash flow management
2. Working Capital management
3. Profitability Management
4. Global Financial Management

Question 2

4 cash flow strats

Answer 2

1. Cash flow statements
2. Distribution of payments
3. Discounts for early payment
4. Factoring

Question 3

Cash flow statements WHAT? & HOW?

Question 4

Distribution of payments. What & pros/cons

Answer 4

• A way of ensuring prompt payments by incentivising with a discount.
• lose about 2-3% of the full value
• good for cash flow

Question 5

Factoring HOW? & WHY?

Answer 5

• sell accounts receivable for 90% of the full value to a factoring company to chase up the debt instead of you.
• improve cash flow/ quicker way of getting money
• not good for business image toward other businesses for deals