Working Capital Management Made Simple for Business Owners Vinu: Manu, I keep hearing the term working capital. What does it actually mean in simple terms? Manu: It’s the money required to run your day-to-day business—to pay suppliers, hold inventory, and manage customer credit. Vinu: So how do I ca...
Cash Flow Planning: How to Ensure Your Business Never Runs Out of Cash Vinu: Manu, my biggest fear is running out of cash. How do I prevent that? Manu: Simple—plan your cash flow in advance, not after problems arise. Vinu: What exactly is cash flow planning? Manu: It’s estimating cash inflows and ou...
Know Your Break-Even Before You Price Your Product Vinu: Manu, what exactly is break-even analysis? Manu: It’s the point where total revenue equals total cost, Vinu—no profit, no loss. It tells you the minimum sales needed to stay viable. Vinu: Can you explain with numbers? Manu: Sure. If fixed cost...
Mastering Cash Flow Forecasting for Better Financial Control Vinu: Manu, why is cash flow forecasting so important for finance teams? Manu: Because it prevents surprises, Vinu. Profit shows performance, but cash flow forecasting ensures survival and planning. Vinu: Where should executives start whil...
Non-Fund Based Limits (LC & BG): The Hidden Credit Risks Bankers Must Watch Vinu: Manu, non-fund based limits like LC and BG don’t involve immediate cash outflow. Why are they still risky? Manu: Because they can convert into fund-based exposure anytime. Once an LC devolves or a BG is invoked, the ba...