If there’s one thing that could keep a business owner up all night, it is cash flow. It is what secures the future of a business and keep its doors open for business. Corporate Collect has the perfect solution to solve cash flow problems.
The importance of good cash flow management
Managing cash flow is one of the most important roles a business owner needs to fulfill. Let’s take the South African National Treasury as an example. Cash flow is a big problem National Treasury is currently experiencing with their parastatals. It is mainly due to the time it takes consumers and the various levels of supply chain to pay for the services rendered.
What is the holdup you may be asking? There can be various reasons, one being possible corruption in the money chain. Consequences can be dire.This directly affects National Treasury’s budget if parastatals are not paid and pay the monies through from their side, on time.
Should the National Treasury experience cash flow problems, it will negatively impact the whole country as the entity will not be able to deliver on its mandate.
How to solve cash flow problems
The solution is simple – Automation. The Corporate Collect platform features a tailor-made solution for both government entities and the private sector that will help effectively manage cash flow.
The platform allows entities to eradicate cash flow problems by collecting for services made against the consumer. The collected amount(s) can then be split in a predefined manner to the various parties located in the supply chain.
In a manner of speaking, municipalities act as the collection point for various forms of income. This ranges from water and electricity costs to different levies. The distribution of funds will then take place according to predefined rules and agreements that have been put in place.
Corporate Collect makes the tables turn
The Corporate Collect system does not only ensure that the top dog has healthy cash flow, but also caters for the guys down the supply chain. For example, National Treasury can utilize the Corporate Collect system in such a way that specific grants are paid to certain departments and service providers. The predefined split will ensure that the money goes to the intended parties.
Corporate Collect’s automated system will facilitate the distribution of the funds as set out by the client’s distribution list. Allocating and sending large funds from one department down to the next can cause delays and frustrates not only recipients, but also the process. In a manner of speaking, it slows down the process.
An added advantage of using the Corporate Collect system is that it is already integrated with ABSA bank. ABSA bank software can collect and distribute all funds. This specific software operates in a government-controlled bank account.