Optimization of the company's cash flow

3 ° - The Customer-Loan Control
Control of customer credit is an activity that can be separate in practice of debt collection operations. The 'balancecustomer'
is the essential document. Established for each client allows to control the importance of reliance, to
ensure that the ceiling is not exceeded. «Schedule of customer receivables», meanwhile, resumed each claim a client
and allows its control. This document reveals the possible delays to the date of payment. A system of "automatic
raises" must be organized in order to combat such delays. Beyond a certain period, or a certain amount of debt the
Treasurer will send individualized reminders, if necessary even it call the defaulting debtor.
2.1 - The Organization of "credit-client.
A company always has advantage, regardless of its size, to arrange a specific 'credit-customer '. Commercial and
financial share responsibility for this activity. It is together that they must establish credit limits by customer and by
way of regulation. Thus, on the one hand the commercial service can streamline its business strategy, and on the
other hand financial officer can accurately assess the investment in this type of need in working capital. This last
point should be noted: a procedure of investment demand should be organized in the case of a change in the terms
of settlement with a client.
3 - THE CENTRALISATION OF LIQUIDITY MANAGEMENT.
Complementary techniques to streamline the procedures for billing and collection, centralization of the management
of the company's cash flow appears as a necessity. Indeed, give financial autonomy to each geographic or productive
unit leads to the multiplication of idle balances, funds transfer and administrative and financial costs.
Decentralization in this field led by lengthening of the circuits and waste time.
It is for this reason that the company has adopted a system of management of the cash very centralized. A central
bank account is fed daily by transfers of all revenue collected (AWB) the day before by different accounts of the subcenters
(franchises, wholesalers, agencies, deposits etc.), even if it has an autonomy of management. The bank
account of each center is thus brought back permanently to zero. To pay local expenses, accounts of secondary
centers are in turn fed to the nearest penny according to specific needs and payment authorization by Headquarters.
Before addressing this second point, should quickly describe a last method to shorten the delays. This company has
daily telephone contact with its bankers. It can thus knowing its position or having received or given such information
guide its action. We meet at the present time of many cases where there is a permanent link between the company
and those of its banks - telematics. At any time can therefore be obtained a detailed statement of operations that
could modify the cash position. This is all the more useful as many bank accounts. This system permits to remove the
time elapsing between the moment where a cash (or disbursement) is done to the Bank and its notification to the
company.
II - THE REASONED SLOWDOWN OF THE SETTLEMENT OF DEBTS.
It is not systematically delay the payment of debts at the risk of tainting the reputation of the firm, but the dates of
deadlines in a timely manner.
A - THE RATIONAL ESTABLISHMENT OF DUE DATES.
It is admitted that revenues and expenses are unevenly distributed over time. But rarely the chance to compensate
timely disbursements by inflows. Any company is experiencing periods of negative cash that staffing in the best of
cases by bank credit.
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