Cashflow forecasts Flashcards

(6 cards)

1
Q

Identify periods of cash surplus

A

Business can identify when they are supposed to have cash surplus
Can plan on what they want to do with it

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2
Q

Identify cash deficits

A

Business can regconghise periods of cash deficit and take corrective measures on how fix it

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3
Q

Apply for finance

A

Businesses use cashflow forecasts to show investors and apply for bank loans.
Shows they can make loan repayments

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4
Q

Solve cash flow - discounts

A

You can offer discounts to debtors to pay their debts earlier

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5
Q

Solve cash flow - finance

A

Business can get a source of finance eg bank over draft

High interest tho

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6
Q

Solve cash flow - adjust prices

A

Lowering prices can increase sales and profits overtime

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