“In the wake of COVID-19 crisis, businesses are facing challenges in managing their cash, the irony is – businesses tend to prioritize cash management only when struck by a crisis.’’
– Eshant Giri, Head of corporate finance advisory and Investment Banking at Kriti Capital & Investments Pvt. ltd.
When sales are down and rents are due, how do you improve your finances? While operating in post-lock down conditions, many businesses are increasingly finding themselves in this dilemma. Founders of any organization or people with basic knowledge in finance are familiar with terms like account receivables, account payables and inventory management. However, in many cases what they fail to realize is, much of a company’s liquidity( that can be released) is tied up in its balance sheet. By uncovering individual components of a company’s balance sheet, founders can develop strategies to unlock cash needs of their business.
In our conversation, Mr. Giri recounts one of his experiences of working as a Banker. His client was facing challenges in meeting the liquidity needs of business because sales were growing and additional investments were required. As a first option, the business opted to go for debt financing. To support such growth and subsequent increase in working capital needs, debt and equity as capital sources make sense, but these sources are not cheap and come with lofty terms and conditions. Mr. Eshant suggested that some financing could have been unlocked through simple cash management strategies which could have decreased the requirement for external funding. He says, “It is essential to firstly reflect upon the company’s own balance sheet before looking for external capital injection. Through diligent focus on key working capital components, businesses can release funds that are usually hung up inside a company.”
You will be able to learn simple strategies to manage cash in your business in our ninth session of Training with Trailblazers. Register for Training with Trailblazer Eshant Giri here.
The key takeaway of this session will be as follows:
1. Reflection on key components of your balance sheet: Account Receivables, Account Payables and Inventory Management.
2. Focusing on working capital management.
3. Finding alternatives to expensive, external sources of finding.
4. Prioritizing cash management as a key component to strategic planning
About your Trailblazer:
Mr. Eshant Giri works as a Head of corporate finance advisory and Investment Banking at Kriti Capital Investments Pvt. ltd.
His initiation: Liquidity Diagnostic Program, is a new line of service offered by Kriti Capital & Investments Pvt. Ltd. which aims to enable business owners to uncover the hidden value of their balance sheet by : analyzing, planning and strategizing its individual key components. The objective of this program is to release value tied up in a company’s balance sheet through cash management strategies.
Kriti Capital & Investments Pvt. Ltd. is a Merchant Bank that provides one-stop investment solutions to businesses in Nepal. The company deals in public equity through its Portfolio Management Services and covers the private capital market through this Corporate advisory wing. Through its associate company, Kriti Venture Fund Limited, it is promoting businesses in Energy, Real Estate and After Sale – Auto Sector.
To know more about Kriti Capital & Investments Pvt. Ltd. please visit their website
Training session details:
Date – 12/ July /2020
Day- Sunday
Time – 2:30 pm onwards
This is a limited, online and free version of Training with Trailblazers. To register please follow this link.
