Finance strategies

• Factoring is the selling of accounts receivable for a discounted price to a finance or a specialist finance company. The business saves on the costs in following up on unpaid accounts receivable and debt collection. Factoring is growing in popularity as a strategy to improve working capital.This enables the business to have the cash needed immediately.
• Cash flow is the adequate flows of cash in and out of the business over a period of time. Inflows: Sales, Accounts recievable, commissions, Sales of assets, Rents, Interest and dividendsOutflows: Payments to suppliers, interest on loans, purchase of assets, loan repayents, drawings, operating expenses