In a market with huge potential for economic growth, it’s important for companies to control and take steps to enhance effective cash management and increase profitability from core business focuses to ensure enhanced shareholder value, growth and sustainability.
ABC GROUP INVESTMENTS can assist in enhancing your working capital position, strengthening operational and financial efficiency and effectiveness. The better the condition, the better positioned your company is in focusing on developing core business areas.
By addressing the drivers of working capital, ABC GROUP INVESTMENTS will promote and accelerate the reaping of significant operating cost and customer service improvement.
HOLD ONTO YOUR CASH
Cash flow – Ever heard the saying “Cash is King”? Well, they were right! Today’s economy and market place is very volatile. It is always good practice to preserve your cash so that the business has options in its time of need.
ABC GROUP INVESTMENTS WILL FUND YOUR EQUIPMENT NEEDS
Time value of money – Three years ago, R100 was “worth” more than R100 today. As inflation and market economies change, the buying power of money reduces.
Depreciating equipment – Equipment by nature depreciates in value, every year. It does not make good business or financial sense to purchase equipment using available cash. Rather use your cash to grow your customer base.
ACCESS TO EQUIPMENT YOU WANT – OFF BALANCE SHEET
Preserve your lending power – Your businesses balance sheet is your lifeline. The more liabilities you put onto your balance sheet, the worse your return on equity ratio is going to be. Banks use a business’s gearing ratio to determine how much money they’d lend to the business.