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Updated: 20th December 2018

Financially speaking, the key to business success and longevity is one which operates within a carefully harmonised balance between profit, investment capacity, and liquidity. Optimising your working capital management can result in huge gains when it comes to freeing up capital, streamlining your business processes, and negating the need for expensive outside funding.

Your working capital should work hard for you, allowing you to meet your short-term financial obligations as and when they fall due, as well as allowing you to seize growth opportunities when they arise.

A considered working capital management strategy helps to reduce inefficiencies, manage expenses, and improve operational performance to maintain a desirable level of liquidity. Whether you are concerned with short-term liquidity yields, or are interested in a longer-term outlook for planning a growth project such as preparing to move into a new market or investing in improved infrastructure, our working capital management experts can assist. We can support your business whether you are in the midst of a distress situation, or if you are looking to safeguard your company for the future.

Cash flow is often contingent on outside factors such as outstanding creditors, or macro-environmental factors which are an inherent risk of trading in uncertain political or economic landscapes. These can have a devastating impact on turnover and overall profitability. Being aware of what these potential pitfalls are allows you to mitigate the associated risks before they begin to affect your company.

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RBR Advisory can provide a fresh approach to your working capital management, delivering innovative solutions to cash flow concerns, immediately freeing up vital funds and reducing the need for outside finance. If your company is flourishing, however, a careful working capital management strategy can help to minimise the possibility of over-trading while a scalable plan allows for continued growth at a sustainable rate.

Key performance indicators such as inventory turnover ratio will be analysed to build up an accurate and useable view of the company’s financial position while allowing for any inefficient areas to be highlighted and relevant action taken to mitigate the effects. Cash flow will be scrutinise by conducting a collection ratio test to monitor how efficient current collection methods are. Should these be found to be inadequate, and the business is exposing itself unnecessarily to the threat of bad debt, measures will be implemented to shelter your company against this risk.

While all businesses need to operate at a healthy level of liquidity to ensure liabilities are met, ideal requirements differ from industry to industry. Our restructuring experts will devise a bespoke strategy for your company taking into account the sector you are operating in, the specific challenges you are facing, as well as any future threats such as impending regulatory changes. A tailored plan will be implemented to secure immediate results with a keen eye fixed on future growth.

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