Identify periods of cash surplus
Business can identify when they are supposed to have cash surplus
Can plan on what they want to do with it
Identify cash deficits
Business can regconghise periods of cash deficit and take corrective measures on how fix it
Apply for finance
Businesses use cashflow forecasts to show investors and apply for bank loans.
Shows they can make loan repayments
Solve cash flow - discounts
You can offer discounts to debtors to pay their debts earlier
Solve cash flow - finance
Business can get a source of finance eg bank over draft
High interest tho
Solve cash flow - adjust prices
Lowering prices can increase sales and profits overtime