Managing Cashflow
Cashflow management is the monitoring, surveillance, and active management of the actual money coming in and going out of your business. It’s more than what you currently have in the bank, as it also considers the money you are owed by others, any unpaid debts, or scheduled payments you may have.
Additionally, it involves taking actions to maintain the financial health of your business, both now and in the future.
Cashflow management is important all year round, but at this time of the year with annual tax filing deadlines in mind, cashflow management is critical to all businesses. This can be a busy and potentially stressful time for many business owners, however effective financial forecasting, cashflow management, and early tax planning can help reduce and relieve the stress.
By managing cashflow effectively, you will be able to keep your business secure and profitable, while providing the opportunity to forecast investment opportunities, establish company spending and build up an emergency cash fund. Being prepared for all scenarios that may occur throughout the year for your business is vital.
AIB’s Cashflow Solution for your Business: PromptPay
Paying significant annual bills requires planning, and AIB's cashflow solution, PromptPay supports your company to conserve cash for expected and unexpected expenses. With PromptPay, your business can spread large one-off expenses, such as your annual tax bill or pension payments across six to 11 months.
To gain a better understanding of PromptPay, we posed a few questions to Alan O’ Regan, Head of Finance & Leasing in Area South at AIB, on why he recommends PromptPay to his Business customers.
Can you tell us a little bit about PromptPay?
PromptPay is a short-term working capital finance product which enables businesses to finance significant annual payments over an 11-month term, easing cashflow pressures and are a key part of our product offering to many business customers.
Why do you recommend PromptPay to your customers?
PromptPay is a great product for businesses to manage their cashflow as it facilitates spreading annual payments such as corporation tax or business insurance over a max 11-month term in manageable monthly repayments.
All business customers have an insurance requirement and through knowing our customers and their businesses we ask them how they fund same and advise them of the PromptPay solution which may suit spreading their annual costs over an 11-month period.
What are the benefits of using PromptPay?
It is a short-term working capital finance product which enables businesses to manage their annual cashflow as it facilitates spreading annual bills over an 11-month period which in turn can ease cashflow pressures.
AIB Business Banking Customer Glenwise speak on their experience managing cashflow with PromptPay
Glenwise, established by Francis Glennon, is a family-run business with over 35 years’ experience in manufacturing kitchens and bedroom furniture for clients. They have grown to become one of the leading kitchen manufacturing companies in Ireland, dedicated to providing the highest quality and delivering exceptional client experience to their customers. From their workshop and showroom in Dublin, all kitchens and bedroom furniture are crafted and installed to the highest standards. Glenwise’s expertise is in designing kitchens of style and bedrooms of elegance, whilst ensuring complete peace of mind for their clients.
“We have had a strong banking relationship with AIB since 1989, and since then we have expanded greatly in premises, staff, machinery, and turnover. All whilst being supported by a reliable banking partner in AIB.”
Running a family business brings significant responsibilities specifically in managing finances, profit and loss and cashflow. In the dynamic and ever-evolving landscape of modern business, the optimisation of working capital is critical in ensuring sustainable growth and maintaining financial stability. Francis emphasised the important role that AIB has helped play over the years when it comes to managing cashflow.
“As a family run business, communication, transparency, and trust are critical with your chosen banking partner. Shane Biggs, our long-term AIB Relationship Manager has greatly supported Glenwise in providing innovative solutions to aid our company’s cashflow management such a PromptPay, enabling best practices, commercial discipline, and fixed terms, alleviating the challenges of large bills, whilst providing more flexibility in managing our cashflow”.
When asked about their experience with PromptPay, Francis spoke positively about the process and reiterated his desire to use it going forward. “The PromptPay end-to-end application and approval process is very straight-forward, and additionally set-up is streamlined and simplified, bringing reliability, flexibility, and efficiency. We do not doubt PromptPay will continue to assist us in adding value to the overall continued success of our business, by further allowing us to manage our cashflow effectively and efficiently with no unexpected changes in our fixed interest terms”.
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