Management can once again concentrate on the issues that led to the cash problem free of distraction and in order to maximise their operations.
Ways that Postern will seek to improve cash generation for a client:
Shorten client credit terms
‘Spring Clean’ old stock and realise as much cash as possible
Optimise stock turns to minimise holding and release cash
Review contract out/buy assets policy
Review capital spend and focus on ROI projects plus ‘legals’ only for an initial period
Assess debt position, interest paid and potential for re-financing
Assess need for factoring for short term cash flow versus cost.
Assess key creditor positions such as landlords, HMRC, banks, raw material sell back/consignment stock options etc. and re-negotiate more favourable terms.