1. Cash Expanding business – those that are doing well – will usually be short of funds during the period of their growth. Cash is required for: –Investment –Working Capital Cash flow forecast is different from a cash flow statement

2. Cash Cash Flow forecast elements –Predicted receipts from sales activities –Routine payments –Non-routine payments Corporate treasury role – check bank balances daily Should sales people be rewarded only once payment received, and should they collect it themselves? Permanent vs short term finance

3. Cash 3 main reasons to hold cash –The transactions motive –The precautionary motive –The speculative motive

4. Working Capital - Stock Can you think of examples where the customer is willing to wait for goods or services? Do service providers have stock? (eg. Banks, software developers) How do business ensure that they have minimal, yet enough stock?

5. Working Capital - Debtors Credit Control departments Offering discounts for early paymentdiscounts Charging penalty interest Factoring and invoice discounting

6. Working Capital - Creditors Many companies pay their suppliers slowly and then expect their suppliers to hold stocks for them. How will their willingness and customer service be?

7. Raising Finance The main source of funds on an on-going basis will be cash resulting from profits. Debt vs Equity, timing, current level of gearing