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90% of Treasurers struggle to ensure consistent cash flow and efficient debt management.
Negative cash flow and inefficient debt management drain their working capital.
Modern Treasury Policies help businesses to manage their debt and mitigate financial risk.
It helps build a healthy financial relationship between the different operating units. It even assists a company in maintaining the right balance between AR and AP.
Thus, resulting in increased profits and better use of liquid cash.
The six Treasury policies focused on fulfilling financial objectives are:
1. Cash Management Policies
Its purpose is to ensure the safety, storage, and movement of the cash assets of a company.
2. Debt Management Policies
Its purpose is to manage the liabilities that a company incurs when acquiring debt from a 3rd party.
3. Investment Management Policies
Its purpose is to safeguard and leverage the excess cash balances of a company.
4. Risk Management Policies
Its purpose is to limit the exposure of a company to the market situations it wishes to expose itself.
5. Bank Relationship Policies
Its purpose is to choose the best financial institutions that favor the growth of a company.
6. Internal Relationship Policies
Its purpose is to illustrate what to consider as good service or shared goal between treasury and other departments within a company.
Watch this expert-led course to indulge in Bruce Lynn's six effective treasury policies. Improve your cash flow issues today!!
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