The 4C’s of optimising cashflow in uncertain times

With many businesses struggling with high interest rates, inflation, volatile petrol prices, and unstable electricity supply, leaders are now more focused on optimising their cashflow.

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

Craft a strategy

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

At times like these cashflow 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 cashflow 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 who 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 their returns while still being able to access the funds required for regular operations, and for any unforeseen needs too.

Commit

Shoring up for turbulent weather feels defensive to many businesses who have progressive business strategies. However, a fresh approach to managing cashflow 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, please visit sasfin.com/investments or contact us at bank@sasfin.com.