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The Challenge of Cash flow for Company Formation

According to a recent report , conducted by corporate investment firm ‘EFG’ , more than thirty per cent of all recently formed companies have found maintaining a healthy cash flow the biggest challenge of presented by the recession.

The survey, which involved over two thousand small business owners who had recently gone through the company formation process, found that over forty per cent felt that the commercial future of their company was threatened by the bad debt and spiraling costs

Lorraine Candy, enterprise manager at EFG, comments; “Managing the ebb and flow of cash going in and out of a business is absolutely crucial to its success – especially in the current economic climate, where there is a restricted amount of finance available.”

“Companies must review their cash flow daily and plan for any eventuality. Communication with suppliers and debtors is key.”

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