- KredX Editorial Team
- 07 Aug 21
- business,Revenue Based Financing

Financial planning has always been a complex task for businesses, large and small. However, with the ongoing crisis, it has become more difficult. A massive percentage of organisations are widely at different levels of liquidity and financial situations. This calls for a new approach to managing finances and adjusting both controllable and uncontrollable economic variables.
Proper financial planning, including an integrated, end-to-end plan, can help stimulate operating elements of businesses.
How To Strategise An Effective Financial Planning?
Find out ways below on how to sail through this period of uncertainty.1. Understand The Correct Time For Forecasting
Start resolving short-term challenges. First, set plans for now, i.e., up to 90 days, next, i.e., up to 12 months, and then for longer-term trends.2. Determine What Drives The Financial Forecasts
While most drivers have remained unchanged, there are quite a few created due to the ongoing pandemic. Understand how those drivers are hampering your business.3. Make Rapid Changes Per External Factors
For this, a business owner needs to determine or perform the following –- Gathering accurate data from the recent trends
- Regularly scrutinising sales, cost of goods sold, working capital, etc.
- Studying changes in macroeconomic situations or any underlying factors
- Improving cash conversation cycle
- Assessing cash flow and operating expenses routinely
- Evaluating daily cash available premised on weekly accounts receivables and payables
- Speeding up sales and delivery cycles to get paid quickly
4. Strengthen Cash Flow By Opting For Alternate Financial Options
External financing can help businesses keep operations afloat. However, companies might struggle with acquiring traditional loans because of rising delinquency rates in the sector. As such, businesses can consider alternate financing options like the ones listed below –-
Invoice Discounting
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Revenue-based Financing
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Letter Of Credit
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Overdraft Facility
5. Segregate Personal And Business Accounts
Often start-up owners fail to balance between personal and business goals. As a result, it can hamper professional growth significantly. Therefore, handling separate accounts for business and personal needs can considerably minimise disruptions in the process of development.8 Benefits Of Financial Planning
The tips described above on financial planning can help a business in the following ways –- Improves cash flow management
- Helps allocate the budget better
- Reduces unnecessary expenses
- Helps structure growth roadmap
- Cuts down the risk to a certain extent
- Helps manage crisis effectively
- Maintains transparency with investors and workers
- Helps gain clarity regarding upcoming goals