What is the maturity schedule and what does it prevent?
It is a payment calendar by week or month (debt, taxes, rent). Avoid the “trap month” when everything is due at once
Why separate “operating cash” from “reserve cash”?
Because day-to-day cash flow should not be mixed with the cushion. If you separate accounts or sub-accounts, you reduce the risk of eating into your reserve…
What is the cost of serving, and what decision unlocks it?
It is what it costs to serve a customer, including deliveries, incidents, returns, and internal hours. When you calculate it, you discover customers…
Why is it important to measure customer concentration?
If 20 or 30 percent of your sales depend on 1 or 2 clients, a payment delay or a loss could break your cash flow
What is the safety margin and why does it protect you?
It is the distance between your actual sales and your break-even point. The greater it is, the more your company
How does combining ICO (Official Credit Institute) and SGR (Mutual Guarantee Society) help to reduce the cost and facilitate financing?
The combination works because ICO provides lines with standardized conditions and long maturities, while the SGR adds a guarantee
What is internal bank rating?
It’s the bank’s model that scores your risk with variables of solvency, liquidity, profitability, seniority, sector, and payment behavior.
What should be included in a weekly treasury budget?
Include daily inflows and outflows, opening and closing balances, expected taxes, and payroll and debt due dates.
What values for DSO, DPO, and DIO are “good”?
DSO (days sales outstanding), DPO (days payable outstanding), and DIO (days inventory outstanding) depend on the sector, seasonality, and bargaining power.
What is WACC and what is it used for?
WACC, the weighted average cost of capital, is the minimum return required by shareholders and creditors according to their weight in the financial structure
