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Both asset based finance and cash flow finance are important sources of funding for a business for its short term(working capital) and long term(capital assets) sustainability. Asset-based finance is a source of funding that is secured by a company’s assets. This article looks at what is asset based finance and see the difference between the [...] In earlier articles,we learned about cash conversion cycle and other working capital management techniques. Below is a simple illustration on how to compute the working capital requirement and a few suggestion to improve the computed amount:- Let’s have say Division A in Company ABC Ltd plans to launch a new product. The plan is [...] In this segment on Working Capital Management,a section is solely dedicated to the topic on Cash Management. Append are some articles in my other accounting blog to enhance some basic knowledge on managing Cash: (1) Optimizing Working Capital By Cash Management (2) Cash Management-Factors To Consider When Investing Cash Surplus (3) Cash Management-Investing Cash [...] There are several major pitfalls that we should avoid when managing the company’s working capital: 1.Mindset/Belief Change:- do not believe that only financial distressed companies should focus on improving the working capital. While it is true that distressed companies do have a particular motivation to improve liquidity,it is a grave mistake to believe that [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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