India Entry & Business Startup Consultings

Cash Flow Management

Cash Flow Management

Cash flow management is managing the cash flow issues of business and amending the position of a business at a quick pace. Insolvency and Bankruptcy code offers a solution to manage the flow of cash in business by appointing an Insolvency Professional who understands the structure of your company and its operations and advises the best course of action tailor to the client’s particular financial situation.


  1. Financial health check of Business

Insolvency Professional reviews the income and expenditure of a company and accesses the revenue of a company so that a plan can be suggested on how to work out the finances of the business.

  1. Improving profit margins

Price audits can be conducted on a company to identify the cash leakages in a Company. Resultantly, cost-effective avenues can be devised for improving the financial status of a company by entering into price negotiations with vendors. Renegotiating the prices may assist in improving and maintaining profit margins.

  1. Cost-cutting

Cost-cutting is the best way of streamlining costs by continuously moving to the best tariffs and deals. It may seem simplistic, but noteworthy savings may be made through adopting an optimal cost model. Insolvency professional suggests and plans on how to maintain and manage the cash flow of an organization.

  1. Prioritizing credit control

The debtor company gauges the amount of debt money owed in the business. Prioritizing the credit-control ensures that the owed money is duly quantified, payment avenues are identified and a proper plan is charted out for retaining a positive cash flow.

  1. Cash flow forecasts

Insolvency professional uses cash flow forecasts for informing the client the proposed cash quantum that may be required in the coming months. Cash flow forecasts are a very valuable, but often underused tool, which forewarns company directors of possible trouble ahead. They need to be updated frequently, though, with the actual figures being compared to those forecasts.

  1. Negotiate with creditors

Creditors are usually open to negotiations where they foresee to receive their payments in full. However, they may approve to extend the terms of the loan for a longer repayment period to the debtor, thereby providing such debtor a breathing space. Professional negotiations can be initiated in deserving cases on management calls.

  1. Consultation by licensed Insolvency Practitioner

A professional Insolvency Practitioner gains an understanding of the business structure and its processes and recommends the best course of action in a particular situation. Businesses seek the assistance of an Insolvency Practitioner when they may identify the future cash flow difficulties, rather than waiting until it is too late to overcome an insolvency proceeding.

  1. Voluntary Arrangement

The voluntary arrangement is entered into for charting out extended payment terms. It further permits the company to continue trading as a going concern under the same directorship.

How ASC Helps?

  • Financial health check of the company.
  • Negotiating with creditors.
  • Liaisoning with licensed Insolvency Practitioner.
  • Drafting extended payment terms.
  • Advisory on improving profit margins.
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