Balance Sheet Optimisation
You want to get away from the permanent stress and effort linked to a cash shortage and see the real benefit of your business crystallized in money! It often happens that companies are at the limit of their bank credit. Either their credit line does not fit their business profile or their balance sheet suffers of a cruel lack of attention, especially on Receivables and Inventories. In fact, it is crucial to follow up on Receivables to avoid delays in there payment and to identify any potential litigation resulting from dissatisfaction with goods or services delivered. Inventories also require attention. In fact, the company should set up the right inventory level, and work out procurement and production policies which tend to preserve this level and avoid successive stock out. As a conclusion, these balance sheet management problems can be solved through a company discipline which is not too heavy, and prevent flirting with bank credit limits which are big time consumer and which use time that could be dedicated to the pure business |
