Optimization of the company's cash flow

2 - THE FEAR OF THE DEBIT BALANCE.
A second generator cause of unused funds lies in the attitude of the company with regard to the overdraft. Fear of
the overdraft is for these companies to three main reasons:
The fear of being forced to use the more expensive short-term credit because it’s the quicker;
The fear of antagonizing his banker by this unexpected funding requirement;
The fear, ultimately giving birth to rumors about the financial soundness of the firm.
These concerns are so vivid that they grow to stop after have mobilized them, of large cash surplus. This behavior is
sometimes erected in the company where retain permanently a bank balance very much positive. In any case, it is a
sign of poor control of cash: the person in charge will cover, as a security, well beyond its real needs, it cannot assess
with rigor. In these circumstances it is for the company to borrow money from his bank and to put free part at its
disposal. In addition to the shortfall, in opportunity cost, these bank balances cost weighted average rate of the
capital, or "cost of capital".
3 - THE IMPORTANCE OF UNUSED FUNDS AND ITS CONSEQUENCES.
Any unspent funds affect the profitability of the firm. In addition, they do not represent a sufficient guarantee of
solvency.
1 - Statistical Evaluation of unused funds.
This is to give an order of magnitude of the phenomenon in terms of proper idle cash as the "float".
a) Assessment of idle cash.
We can appreciate the importance of the sums of money on the company’s account, "banks and postal check", and
therefore unnecessarily financed, by examining the value of this position on the balance sheet synthetic and
summary of the accounting data of IWACO subject to the regime of the actual profit.
Can also measure the importance of unnecessarily funded funds by looking at the balance sheets of major French
banks of deposit, under the heading in the passive: "accounts of enterprises. Table 10 below, brings together the
accounts of the company, contained liability side of the balance sheet of the Bank of the company. These idle
balances properly say, ads "float". The percentage presents the amount of the account from the global amount of
inflows that the company had in its inflows. The BMCE is not officially activated. The following table gives example
of the company’s Inflows during 2014-2015, Table n°9: Inflows of IWACO during 2014-15
PERIOD AWB BMCI BMCE
January – 2014 0,00 DH 1 198 960,66 DH Not Yet
February – 2014 184 572,00 DH 1 688 230,79 DH Not Yet
March – 2014 0,00 DH 3 836 491,74 DH Not Yet
April – 2014 0,00 DH 2 721 775,26 DH Not Yet
Mai – 2014 0,00 DH 2 016 630,32 DH Not Yet
June – 2014 0,00 DH 1 277 555,14 DH Not Yet
July – 2014 0,00 DH 669 941,79 DH Not Yet
August – 2014 0,00 DH 2396 546,75 DH Not Yet
September – 2014 0,00 DH 2 159 968,79 DH Not Yet
October – 2014 0,00 DH 1 817 837,55 DH Not Yet
November – 2014 0,00 DH 957 697,73 DH Not Yet
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