Case Study 2 - Cash Management
A management buyout of two year's standing, the new owners of this West Yorkshire based £12m turnover specialised construction company were facing constant cash pressures and consequently receiving an uncomfortable level of bank attention and scrutiny. As part of their actions to counter this they asked us to train them on managing cash and dealing with the bank.
We provided tiered training on working capital management, cash budgeting, credit control, cash control around covenants and advised the Board on how to optimise their relationship with the banks. The tiered nature of the training meant that it was cascaded to all levels of staff - concentrating on what they could do personally to improve the company's position.
Training for all staff involved using their own information and circumstances to underpin the training - thus giving it immediate practical relevance and transferability.
The company now enjoys an excellent relationship with its bank - helped of course by the fact that is now comfortably meeting its covenants (even in the occasional poorer trading quarter) through better management of its resources.