In troubled times, even the most profitable business can swiftly become unsustainable if cash controls are weak and visibility over cash is limited. At a stroke, financial institutions adopt stricter conditions for funding. Robust, sustainable crisis cash management buys valuable breathing space to restructure and/or refinance. In the longer run, an improved cash flow can reduce debt, fund growth and provide better stakeholder returns.
In a crisis like COVID-19, your business may have limited time under existing financial arrangements. These seven steps can help you gain time to stabilize: