As the market is flooded with startups how would one make sure to be visible and sustainable? Well, many factors contribute to it but one of them is cash flow.

What is a cash flow?

  • Cashflow is the process of monitoring, analyzing, and optimizing the inflow and outflow of cash in business

    The Digital Era For MSMEs
  • Doing the tasks manually while analyzing and monitoring the cashflow consumes a lot of manpower resources and time 
  • As they are prone to errors when work is done manually 
    • According to recent statistics, conducted by the Small Industries Development Bank of India (SIDBI) 75% of Indian MSMEs face issues of delayed payments from their client when most of India is moving forward to automate the process we don’t want you to fall back.





We will be exploring the significance of cashflow management and common challenges faced by the Indian MSMEs

  1. Delayed payments – Indian MSMEs of ten face difficulties when a client delays making payments within the expected time frame which can disrupt the financial plans of the company and result delay in the workflow schedule 
  2. Seasonal changes – many Indian businesses experience income fluctuations throughout the year due to seasonal trends 
  3. Limited working capital – as most of the MSMEs tend to have budget constraints efficient cashflow is essential while maintaining a good relationship with the suppliers 



Consequences Of Poor Cash Flow Management 

Irregular and inadequate cash flow leads to major consequences that would be faced by the organization such as employee morale & retention issues, credit crunch, and legal and regulatory penalties, etc. 

Financial strains that hinder fulfilling responsibilities like salaries, rent, and suppliers and having a backup plan to conquer the challenges need crisis intervention which in every possible we would want to avoid it 

a) Navigating volatile market – given the volatility of Indian markets, sectors like retail and manufacturing can face unexpected market conditions, potentially resulting in  negative cash flow

b) Growth is stagnant – lack of capital or irregular capital can hinder the ability to expand, upgrade, and limit growth potential


Precautionary measures to take

a) Tracking and managing expenses – implementing effective tracking and management is a strategic approach that one must take which ensures that the business makes data-driven decisions and utilizes the available resources effectively
b) Invoice financing – it allows businesses to access cash quickly by using their unpaid invoices as collateral, which helps in liquidity crisis caused by delayed payments

c) Cashflow forecasting tools – access to advanced software helps to provide accurate prediction of future hurdles, empowering businesses to be prepared


Don’t let cash flow challenges hold you back we would like you to explore our solution by clicking here –altx.one