SME funding and the importance of monitoring cash flow
In the formative phase of SMEs, the need for funding is a constant concern. In SA there is a further problem that traditional banks and funding institutions respond slowly to requests for additional funding. The attached post provides some additional thoughts and methodology to this widespread issue. For any new and developing SME, it is key to have a business plan and cash flow projections that can cover weekly and monthly periods to monitor projected against actual results for at least six months ahead. These projections are necessary to ensure that there is adequate early warning of a need to raise additional funding for the business. This is particularly important if the need exists to approach banks or other forms of funding providers to raise the additional funding required.