Why companies must optimise cash flow in uncertain times

As many businesses struggle with high interest rates, inflation, volatile petrol prices and an unstable electricity supply, leaders have to focus on optimising their cash flow.

Companies are adopting a smart approach to maximise growth by investing surplus cash in a combination of cash products that generate returns and provide access to funds.

Crafting a strategy

Businesses that strategically manage their cash flow often seek customised solutions from specialist partners who consider more than just rate-of-return to help grow their money.

At times like these, cash flow management is more important than ever and surplus cash offers great opportunities for growth.

We’re motivated daily by the tremendous courage of South Africa’s business leaders and entrepreneurs – and we know that finding ways to maximise their investment and savings yield will mean that they can focus on running and growing their business.

Crafting an effective cash optimisation strategy highlights the need for businesses to consider a combination of products over different time periods designed to achieve specific objectives.

Combine and conquer

Optimal cash flow management can be achieved through a combination of call, fixed, and notice deposit products designed to be flexible around the cadence of a business’s operations. For example, a daily call account is a smart place to keep daily deposits, while a notice account is a great place to save for planned longer-term expenses.

At the same time, money needs to be accrued for twice-yearly tax payments and annual bonuses for staff – and it makes sense to have this money working for the business until it needs to be paid out.

Customise

Every business is unique and deserves the individual attention of a banking partner that takes the time to understand its ebbs and flows, its challenges and strengths, and develops a solution for their clients as if the money was their own.

Benefiting from a personalised approach that goes beyond the transaction and focuses on solutions means that an organisation can optimise returns while still able to access the funds required for regular operations, or for any unforeseen needs.

Commitment

Shoring up for turbulent weather feels defensive to businesses which have progressive business strategies in place. However, a fresh approach to managing cash flow and investing intelligently creates options and agility across different economic seasons, drawing on a variety of products that work in unison. Having a dedicated partner in your corner that goes beyond banking is the difference between just weathering current economic conditions or skilfully navigating them to your advantage.

If you would like to find out more, go to Sasfin Investments or contact bank@sasfin.com.

About Sasfin
Sasfin contributes to society by going beyond enabling entrepreneurs and investors to grow their businesses and global wealth; supporting job creation and sustainable socio-economic development as well as a culture of savings. Our personal touch, digital platforms and agility allow us to compete effectively. Sasfin was listed on the JSE in 1987 and is a bank-controlling company that comprises three business pillars: asset finance, business and commercial banking, and wealth. The group has regional offices in four South African provinces and eight cities. Sasfin is a B-BBEE level-1 contributor.