Treasurers bemoan cash-flow forecasting, says survey
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Treasurers bemoan cash-flow forecasting, says survey

Accurate cash-flow forecasting still provides a headache for corporate treasurers and is prompting a drive to non-traditional short-term investments such as money market funds, according to a survey conducted by BDRC for ABN AMRO. Over four-fifths of respondents to the survey said cash-flows could be reasonably well-predicted over a time period as short as two-to-three days, but the predictions start to lose accuracy as the time period is extended. The causal factors include account receivables, payment timing and non-centralised cash management.

Term deposits account for almost half of treasurers' short-term cash with current accounts taking up a further 20%. But the survey also notes a growing appetite for money market funds (over half the respondents use them) and high yield current accounts, used by 12% of respondents.

"In an increasingly competitive global environment, corporate treasurers strive continually to balance risk and efficiency," comments Phillip Lindow, executive director of liquidity management at ABN. "Our research sends a strong message to providers of liquidity management services. Corporate treasurers want access to flexible investment options that can optimise returns (interest and yield) without compromising liquidity or increasing risk."

Gift this article