Many companies finance projects or investments that will last several months or even years with short-term debt, for example from suppliers. This is a big mistake that can ruin the company if they delay payment for the project. This was the typical case of development or construction companies that relied excessively on financing from their suppliers and subcontractors.
So remember, look for financing options that fit the term of the investment or project , and above all the expected payment schedule.
3. Regularly review treasury positions
Since the advent of online banking, checking cash positions has become a very simple task. We can check balances and make fund transfers from our office.
Spend a little time every day on cash management, so you will get used to managing based on receipts and payments.
4. Reduce your working belgium whatsapp mobile phone number list capital needs
Reducing your working capital needs is important because it must be financed in the short term and is normally done through suppliers or credit policies. This short-term financing is the most dangerous, as it can cause a serious liquidity problem in a matter of a couple of months.
Reduce customer credit (invoicing quickly and without errors), complete ongoing projects and contracts , and minimize investment in finished products and raw materials.
5. Monitor the effect of VAT
It is common for SMEs to be financed with VAT, which causes serious cash flow problems when it comes to quarterly settlements.
Request deferrals if you see that it is better to protect your treasury or adopt the new cash system for accrued VAT.
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