3E Accounting Invited as a Speaker at the CapBridge Wealth Management Webinar
3E Accounting is a strategic partner of CapBridge Financial, which comprises CapBridge and 1exchange. At the CapBridge Wealth Management webinar held on 16 September 2020, a member of 3E Accounting’s management and 1exchange CEO Choo Haiping shared their perspectives on how businesses could strengthen cash flow and prepare for future volatility arising from the pandemic.
Impact of COVID-19 and Mitigating Actions
Although COVID-19 started as a health crisis, it has significantly evolved into a global financial crisis at a tremendous speed and magnitude. The uncertainty in the pandemic’s duration and length posed major cash flow challenges to many businesses. Therefore, it is of utmost importance that businesses should build a robust and sustainable cash flow management to allow for flexible restructuring or refinancing. In a global crisis, gaining visibility and control over cash flows and working capital will help to reduce debt, grow funds and provide better stakeholder returns.
5 Strategies to Strengthen Cash Flow
Management recommends the following five key strategies that businesses can incorporate into their existing processes.
- Invoice early through digital means and chase payments
- Cost optimization and cost control
- Building relationships with customers and suppliers
- Maximize COVID-19 stimulus packages and government assistance
- Inventory Review
Improving Cash Management Amidst COVID-19
The management also explained that cash flow should be seen as the life-blood of all businesses, and it is essential to forecast cash flows to ensure business survivability. The changing environment due to the impact of the current pandemic calls for more emphasis and dedication to managing cash flow and taking effective measures to sustain business continuity.
To efficiently manage business cash flows, companies can consider adopting the following:
- Detail a list of stakeholders impacted by cash flow issues, including stakeholders, lenders, customers, suppliers and employees.
- Make use of funding and liquidity products and engage early with finance providers to address any forecasted deficiencies.
- Explore alternative financing options with investors/lenders. CapBridge and 1exchange offer viable options of fundraising and a private listing.
- Seek better terms from customers and suppliers.
- Deliver action plans for each stakeholder by monitoring and managing the situation.
As the strategic partner of CapBridge Financial, 3E Accounting assists companies to onboard the CapBridge Financial platform for fundraising and private listing for their liquidity needs. Companies who engage 3E Accounting corporate secretarial services for 2 companies will enjoy a full waiver of the Listing Readiness Assessment fee.
