Optimization of the company's cash flow

Analyses from publications of assessments can also be interesting (sheets DAFSA; Minutes of the General meetings;
Grafts of the courts of commerce in France; official newspapers in Belgium), especially if there are professional
standards such as those published by the Central of the balance sheets of the Bank of France.
b) The reduction of the administrative deadlines for recovery
The aim is to shorten the period that elapses between the sale and the time of the company’s receiving funds. Any
delay costs money for the company: fees are equal to the product of the amount of the invoices by the cost of capital,
during the days of waiting, all stages of the deed of sale must be considered, including two:
1 ° - The reduction of “the submission for payment’s deadlines
It is common to see that sometimes more than one month elapses between submission of a check by a client and
the flow of his account. To shorten this period should be to establish a 'selection of mail-regulation' procedure upon
arrival in order to appropriate hand over payment titles to the Bank the same day. We can go up to send a courier -
even by air - seek a check when the amount is worth. Generally avoid transfers of titles of amount by the postal
circuit. Mail losses are relatively rare, but they exist. Add that the reduction of the time limits for submission for
payment implies a concomitant decrease of the accounting recording time.
However at IWACO, effective tool to make such an easy to run is the "Cash Pooling"; It facilitates the transfer if cash
from one company to another knowing that the two belong to the same group.
2 ° - The reduction of the deadlines for cashing.
It may result from a Bank-business negotiation, and is based on techniques developed in the Moroccan commercial
banks. With regard to the case of IWACO society, involving generally three core banks: La Banque Populaire, BMCI,
and Attijari Wafa Bank.
«Area concentration» system: The Company has a number important distribution center has an interest to
group them in strategic areas of recovery. Customers of a specific area are invited to send their payments to
the center of recovery of this area that drop them off at the local bank of the company. The recovery of funds
has accelerated since the securities received in each area are generally earned on the accounts of the banks
of the region. Surplus funds are transferred from local banks to a Bank of centralization.
Area
Concentration
Distributer n°1
Distributer n°2
Distributer n°3
Distributer n°4
Figure n°11: Area of Concentration
"Lock-box" system: it is a refinement of the system above where the company asks customers to send their
regulations not to a recovery center, but a box mailing. Each regional bank notes titles several times per day
and credits on the behalf of the company. Checks are sent to banks related to. At the same time the company
receives a credit notice and documents reproduction. This system accelerates the receipts of several days
and releases the undertaking of the work of handling of checks
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