- Planning tools like cash ‘budgets or cash flow forecast on their own do not give full protection against a cash shortage and enforced liquidation of the business by creditors, strategic fund management to overcome unforeseen problems with cash flows.
- If an expected event takes place which threatens a company’s cash position under such management approach, certain immediate actions can be applied in meeting the threat such as,
a) Reducing the investment in current assets like stock, debtors etc
b) Increasing the sources of short term funds like creditors, overdraft etc
c) Changes in divided policy
e) Arranging in selling off
> Non essential assets which arte able to be realized at fairly short notice such as short term marketable investments.
> No essential assets which time is needed to arrange the sale and amount of cash obtainable from the sale might be uncertain such as long term investment, land and buildings.
Strategic Fund Management
