Cash Management : Efficiency is Key to protect Liquidity

Innovation Shots by Beer Garage
2 min readNov 29, 2021

--

82% — That is the number of businesses that fail due to poor Cash Flow Management. For any business to thrive one must be able to properly balance out the cash inflow and outflow. However one cannot blame the businesses as well, since 41% of businesses throughout the world lack access to funds from all varied sources.

In Africa more than 57% of the population is unbanked, thus liquidity management is one of the main sources of innovation. However in Europe, the picture is very different as post COVID-19 the average operating losses for all firms have risen to ~15% — ~20%, thereby leading to greater cash crunch. Due to this, more than 24% of SME’s across Europe are at the brink of cash flow crisis next year. At the same time, the Indian cash management services market increased positively at a double digit CAGR during the period FY’2013 — FY’ 2018, majorly due to increase in services offered by the cash management companies.

One of the main reasons that a business fails is when expenses exceed the cash inflow i.e. poor Cash Management. Companies with a multitude of cash inflows must be properly managed to maintain adequate business stability.

In order to mitigate this problem as a whole, all major economic superpowers are aiming towards a cashless society so that Cash Management can be a breeze through. Anheuser-Busch InBev has recognized this problem and is aiming for the same. At AB InBev we run an accelerator program, where we partner with niche startups with the common vision of achieving a cashless society and empower them to do so with various resources so that cash management can be made easier.

Follow us on Instagram and LinkedIn for more news & updates.

--

--

Innovation Shots by Beer Garage

Innovation shots brings to you articles that delve into the depths of innovation, leadership, new technology, and more! Website : https://innovation-shots.com/