Liquidity management refers to the process of ensuring that a company has sufficient cash on hand to meet its financial obligations as they come due. Here are a few strategies that you can consider to enhance liquidity management:
- Monitor cash flow: Regularly review your company's cash flow to identify potential shortages and surpluses. This will help you anticipate when you will need to raise additional funds or find ways to reduce your spending.
- Manage debt effectively: Use debt wisely to finance your company's operations, but be sure to keep your total debt levels under control. Consider using a mix of short-term and long-term debt, as well as financing options like lines of credit, to provide flexibility and manage risk.
- Build a cash reserve: Set aside a portion of your company's profits as a cash reserve to help weather financial storms or unexpected expenses.
- Manage your accounts receivable: A strong accounts receivable process is essential for good liquidity management. Be proactive in following up on overdue invoices, and consider offering incentives to encourage customers to pay promptly.
- Optimize your inventory management: Carefully managing your inventory can help reduce excess inventory costs and improve cash flow. Consider implementing just-in-time inventory systems or using consignment inventory to minimize your inventory holding costs.
- And finally and importantly monetize your open invoice by entering in a receivables purchase program with an efficient invoice based working capital provider.
By implementing these strategies, you can help improve your company's liquidity and financial stability.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Set-up for daily settlement routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.
After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
In addition, PRI® CrediSoft is a proprietary receivables credit & collection add-on application supporting credit management processes serviced by Qube Servicing. The application manages and integrates collection workflows and tasks and is fully integrated with PRI® inside.
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.