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How to overcome the lack of financial liquidity for period of time ?

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Question ajoutée par Adel Binarfa , Operation And Administration Head , Union security system & services
Date de publication: 2016/09/01
Michael Mudzengi
par Michael Mudzengi , Group Accountant , Birmingham invest Proprties Ltd

There is a number of things you can do to overcome financial liquidity for a period of time, depending with the nature of the Organisation and the balance sheet position.

-Reduce Receivable balance and work on converting that into cash, reduce accounts receivable days

- offer settlement discounts to prompt early payment by debtors

-Negotiate longer payment terms with your Suppliers, increase your accounts payable days

- Look at your overheads and work on reducing the costs.

Look at Profitability and the performance of all the business lines  or business units, and review.

- Look at the Unproductive Assets and see if they can be converted in to Cash.

-When you have tried everything  and Still it does not work you may have to look at the organisational structure and align it to the organisational needs.

These are some of the ways you can use but the list is long and it depends with the organisation involved.

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