Optimization of the company's cash flow

After many simulations of making the company consume the global overdraft each time, this chart represents the
final result of how the company’s financial flows and balance would be like. A full consummation of the overdraft,
remembering that the company can use the overdraft to pay the supplier in Cash and then do a sort of arbitration
between the gained cash and the financial flows. Still, the company has gaps in January, June, July, October,
December, where they can increase the amount of cash and INWI purchases. The fact is that the company faces new
investment opportunities, but before jumping into ant new business, the company has to verify if the company
manages its current cash treasury or not, and the key to do the perfect evaluation is by controlling and managing the
financial charges or cash gain gathered from the payment of the supplier.
Based on the previous table; the company’s financial costs’ situation was represented as followed:
Table n°20 : Company’s Fianancial
Costs with BU1
The financial analysis of this results shows that the company, according to the 2016 elaborated simulation, was able
to make an annual financial product up to 3 063 945,03 DHS with 1 190 383,84 DHS of financial costs paid as an
interest amount for the both the contracted banks. Yet, the financial challenge for the firm is to have the biggest part
of the paid amount paid in Cash; which in this case is represented in 66% of cash and 34% using the overdraft. The
right definition of this division is that both are held into the same treasury with different rates; cash money on 0.5%
financial gain and 5.35% interest rate for the overdraft, which leaves the company with beneficial margin that allows
it to cover the financial charges and make profit at the same time.
The elaborated simulation could take many forms, and all depends on how much the company looks for covering the
financial charges, squeeze the overdraft line, use the global amount of the credit line in other terms, and make
financial profit. The goal behind paying in cash is so that the company could gain 0.5% of the paid amount, but also
it would allow the firm to have the ability of negotiating the INWI’s line of purchases or the “Objective” as we call it
using the firm’s terms, and in the other hand, gain rate points in the suppliers’ classification of the distributers.
Bank, firm and financial direction, take the responsibility of the controlling and managing the company’s financial
flows, but the only obstacle in this game is that the company doesn’t get the authority over the bank’s decision to
increase or decrease the overdraft line, so the only way to make it happen is to represent at the best position the
company’s Cash-Plan and increase the company’s financial image in front of the banks. Such a decision of negotiating
the overdraft line, either to increase, decrease or to close definitely the account is often related to the company’s
realized inflows or outflows; where using the inflows is to prove the amount of cash deposits that the company realize
inside the company’s bank account or the outflows to show how the company use the bank’s overdraft line to pay
the charges. All in all, the arbitration between the lines obliged the company to maximize at the best the consumption
of the overdraft line in one hand and on the other hand to minimize the costs that the company face or to increase
the use of the overdraft during the week, month or year in order to show to the bank that the overdraft of the bank
account is not enough to cover all the company’s charges.
The company faced a new opportunity of investing, and as it’s known, every opportunity of investing comes with the
chances of paying double or extra charges, the thing that requires for the company to elaborate a financial study
before implanting any new financial flows inside the company, for that, the company added a new treasury
independent of the other but based on the financial current situation of the company. The new investment of the
company wouldn’t make the company stable financially only, but it could also break the trust with banks if the
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