Cash Management

Get support for the day to day cash management of your business

Cash management is a broad area of business finance dealing with how money is collected, handled and used. In general, cash management is a measure of working capital and covers three areas within a business – accounts receivable, accounts payable and inventory.

If you need working capital to support the cash management of your business, Prospa may be able to help with a small business loan of up to $300,000 and competitive interest rates. Keep your business moving with a speedy application process, a quick decision and funding possible in 24 hours.

Why choose Prospa to support your cash management?

Prospa offers fast turnaround loans of $5,000 to $300,000 with terms from 3 to 24 months and cash flow friendly repayments. Funds can be used for any business purpose, and no asset security is required upfront to access up to $100,000.

Easy application

Apply in 10 minutes. Get started online, or call us on 0800 005 797

Fast approval

Fast application and decision with funding possible in 24 hours

Support

Business lending specialists available Mon–Fri: 8:30am–7pm & Sat: 12–4pm

Cash management techniques

When it comes to cash management – the aim is to manage working capital efficiently. That means optimising the amount of cash on hand, using cash effectively, and being prepared for planned and unplanned expenditures. There are various cash management techniques used by businesses in New Zealand.

NZ small businesses should:

  Monitor cash flow regularly

  Bill quickly

  Encourage faster payments

  Cut costs where possible

  Utilise business finance

  Review vendor payment terms

  Use available technology

Some FAQs about cash management

What is the role of cash management??

The role of cash management in a business is to make sure that the working capital in a business can support the day to day cash requirements of that business – including paying invoices, covering staff wages, purchasing inventory etc. The goal is to ensure these needs are met in the best and least expensive way possible. It’s a fine balance, but effective cash management helps a business avoid unexpected cash flow dips that cause business owners unnecessary stress.

 

What are the five different types of cash management tools?

There are many cash management tools available for New Zealand small businesses to use – from accounting packages to budget planners. However the number one cash management tool is probably to enlist the services of a good accountant or authorised financial adviser. They can help you work out which services may be right for your business. Here are five broad areas related to cash management NZ small business owners can consider.

1. Planning – This involves a business looking ahead at the short and long term needs of the business to ensure there’s enough cash available to cover things like payroll, rent, utilities, interest and loan repayments.

2. Budgeting – A budget is a plan that looks at the expected inflows and outflows of cash in a business over a certain period of time. It allows the business owner to manage day to day cash flow – so it should be top priority.

3. Managing – Keeping on top of accounts receivable and accounts payable is at the core of maintaining a good financial position, and it relies on a robust cash management system.

4. Balancing – This involves determining the optimal balance of cash your business needs without having an excess of cash on hand that may be better used elsewhere or invested.

5. Financing – Both short and long term finance options are available to support small businesses and help with cash management.

Apply for a Prospa Small Business Loan today to support the cash management in your business.

 

What are the Big Three of cash management?

At its most basic level, cash management relies on three areas. The ‘Big Three’ of cash management are ‘accounts receivable’, ‘accounts payable’ and ‘inventory’. These three things work hand in hand to deliver a cash flow that runs the business every day. Without effective cash management, a business risks failure in both the short and long term.

Talk to an expert today

If you’re ready to understand your borrowing options get started here, or call us at 0800 005 797 and a business lending specialist will help you with any questions.