Companies have to manage cash flows every day. Business people and cash flow services know that cash flow has to be kept under control on a day to day basis in companies in the most secure, innovative way possible. This is why cash management is of fundamental importance. What does it entail exactly?
Cash management includes a set of products needed for companies to manage takings, local and international payments, and for liquidity management services and corporate banking channels.
Proper cash management improves working capital, optimises the use of banking products and services and lowers exposure to credit risk, optimising company administration procedures.
Companies have to plan their cash flows and payments to build a framework for both investments and prepare for downturns, and therefore adopt the best strategies in association with banks.
The management of cash flows for companies that operate on an international basis can help centralise the management of currency risks.