Crises bring along a period in which institutions need to review their financial structure. How does the financial structure of institutions change with the effects of the crisis? What kind of management does cash flow require? The answers to these questions are important for each institution. Institutions are experiencing the effects of the crisis in different ways, together with criteria such as their country, sector, history, customers, and foreign trade structures.
The effect of incomes may differ depending on the sector and the field of activity, and it will be relieving for the financial structure to achieve a reduction in expenses. It may be possible to increase incomes with the opportunities created by the crisis.
Reviewing the expenses and saving as much as possible will provide relief in cash flow. All expense items should be studied one by one. For example; rental contracts can be reviewed, if there are foreign contracts, their conversion to local currency, purchases can be reviewed.
In the work on receivables, the collection should be reduced to shorter maturities, if possible, it should be checked whether it can be rediscounted, whether the maturities of debts can be postponed, Delayed debts, speeding up the collections of the receivables under legal proceedings. It would be appropriate to review the actions to be taken regarding the collection.It would be appropriate to make e efficient stock management towards stock costs more often than ever.
To work on the institution to eliminate the currency risk, derivative productsthey will have to realize their use to the necessary extent or eliminate the currency risk in different ways.
Along with these, the supply chain is an important chain that must be protected. Supporting the weak link in this chain is not only supporting the weak link. The support provider will also benefit from the protection of this chain.
Re-evaluation of the investment financing title, foreign capital, re-evaluation of equity studies without losing liquidity priority, research and evaluation of the funds provided by the authority for this period. Researching bank loans and finding suitable financing resources for financing the compulsory digital investments of companies that do not have digital capacity as of the period are among the main working topics.
ECA opportunities should be considered for the purchases for investments. Again in this period, it will be useful to look at whether debt reduction, resource cost reduction, and existing debts can be revised under better conditions.
It would be appropriate to review the budgets made in extraordinary periods, to make interim evaluations and to make revisions if necessary. Cash in the institution If there is a shortage, it is possible to strengthen the cash flow by selling assets.
This period will also bring opportunities for institutions with strong cash flows. Affordable company acquisitions, integration investments, investments that can create synergy are possible. It may be possible for institutions with high cash flows to grow contrary to the general trend. Increasing sales channels such as e-commerce, exporting or increasing the export market, developing different products,are pens that can increase.
Despite all the circumstances, it is important for the leader not to lose her vision and continue on his way with an innovative and technologically advanced team. The critical success factors are obtaining consultancy when necessary, being aware of different applications, and making good competition analysis. Good training, development support, institutions for change and it can speed up creating opportunities.