Businesses are expected to be prudent with managing their finances especially when they find themselves short of capital. Cash-flow crisis caused as a result of slowdown in business, macro-economic crisis, innovative and disruptive competitive strategy, or other factors can see liquidity plummeting. If organisations do not take note of the situation and take timely corrective measures, it could lead to complete collapse. Financial innovation and industriousness are prerequisites to deftly handle cash-flow challenges. This requires out-of-the-box solutions and hence out-of-the-box thinking.

1. Sustainable Financial Innovation
A Frills-Free Approach to Problem-Solving
For Organisational
Turnaround
Finance is the lifeblood of any business. Businesses are expected to be prudent with managing their
finances especially when they find themselves short of capital. Cash-flow crisis caused as a result of
slowdown in business, macro-economic crisis, innovative and disruptive competitive strategy, or other
factors can see liquidity plummeting. If organisations do not take note of the situation and take timely
corrective measures, it could lead to complete collapse. Financial innovation and industriousness are
prerequisites to deftly handle cash-flow challenges.
The aviation sector is among
the most volatile sectors.
Several factors make
business unpredictable:
Regulatory
Changes
Fluctuation in
Aviation Fuel Prices
Aircraft Leasing
Costs
Airport Handling
Costs
Administrative
Charges
Kingfisher Airlines Indigo Airlines
Vs.
Optimal Route
Planning
Paid Meals
Maximise Passenger
Load
Aircraft Leasing
Management
Key Steps for Organisational Turnaround
ExtendingAccounts
PayableCycles
ShortenedAccounts
ReceivableCycle
DebtRestructuring
Payout to vendors extended further out thereby improving
cash availability for immediate expenses
When clients delay payments, it hurts cashflow. It is important
to negotiate and reduce the receivable cycle
Organisations must thoroughly analyse performance and
financial viability and renegotiate delinquent debt
SOURCES:
E&Y
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