≡ Cashflow Optimization
At Pentagon Finance our experienced Working Capital team help companies and organizations review and optimize their cashflow to ensure they are operating as efficiently as possible by increasing visibility into the various components at play within your working capital optimization cycle and cashflow framework.
At its core, your working capital optimization cycle is your perfect microscope to observe the process and efficiency of your company’s cash, trade receivables, trade payables, short-term financing and inventory and at how it handles on a day-to-day basis in meeting your corporate objectives. The cycle is also your essential crystal ball that should provide you with important insights as to how much working capital it takes to run your business.
In today’s volatile economy, working capital optimization is critical and must be prioritized as the first building block for survival, sustained liquidity and profitability. To start the conversation, get in touch and start the conversation with us.
≡ Working Capital Management Essentials
To thrive and excel in today’s business environment, you have to be able to focus on your core business, and have an effective strategy for managing and predicting your cashflow and maintain liquidity. Some feel that expansion is the biggest risk for a business, but in fact it’s a lack of working capital that sinks many companies and that can be due to ineffective working capital practices and broken process that are not fit for purpose.
What makes working capital management so critical? In a word, it’s balance. It’s a key process that balances business core functions, including:
- Cash
- Trade receivables
- Trade payables
- Short-term financing
- Inventory
No two companies are quite the same — hence the working capital needs of all organizations will naturally differ, meaning there’s no one-size-fits-all approach to working capital management. The size of your company, its structure, and its long-term business strategy will all impact working capital needs and we aim to help our clients untangle and fix the inefficiencies that exist within their working capital framework and strategy.
≡ Why Choose Pentagon Finance?
We are focused on helping businesses deliver sustainable step change improvements through efficiency and collaboration. The phrase cash is king rings true for many businesses who enjoy growing sales but watch their cash flow get worse.
Our research found that a vast majority of business have inadequate contingent plans and coping mechanism for maintining their cashflow and working capital cycle in times of a crisis or economic down turn, due to competing priorities, a lack of time and resource, inefficient processes and mixed roles and responsibilities of members of staff tasked with maintaining key processes around the working capital cycle.
Our approach starts with a review of your existing working capital framework, policies, processes, cash forecasting procedures and KPIs, so that we can advise on how best to help improve your cashflow at all times and in particular in times of crisis or an economic downturn.
For more information, you can contact the team directly on +44 203 289 0900 or complete the enquiry form across the page.
