Keeping it Simple Managing Cash Flow During Difficult

Keeping it Simple® Managing Cash Flow During Difficult Times Presented by: Andrew Unruh, Business Banking Advisor Sacha Kayriamova, Commercial Banking Advisor September 23, 2020 envisionfinancial. ca Bank. Borrow. Insure. Invest.

Who Are We? About Envision Financial ‘Simplifying lives, helping members and communities thrive’ • Financial cooperative (Member owned and run) • Third largest credit union in BC with over $14 billion in total assets • Creating real value for members through simple banking & knowledgeable advisors at your fingertips to help • Making a difference in our communities • Community partnerships, Signature cause – The Full Cupboard

Doing Our Part During Difficult Times

What Is Cash Flow, Working Capital and Liquidity for the Business? Cash Flow • Sums of money received and paid out • Money IN: Customer sales, Shareholder loans, Asset Sale • Money OUT: Payroll, Supplier Bills, Government Taxes, Loan Payments

What Is Cash Flow, Working Capital and Liquidity for the Business? Working Capital • Cash available to a business at any given time • Is the life/blood of a healthy business • The difference between success and failure • Line of Credit or Loans

What Is Cash Flow, Working Capital and Liquidity for the Business? Liquidity • How quickly can you get your hands on cash? • What are liquid assets? • Can you be too liquid?

Tips to Manage Cash Flow • Invoice quickly • Clearly state payment terms and confirm the right person to send your invoice to • Use credit strategically • Credit helps your business grow; it is okay to rely on responsible credit • Stay on top of your finances • If you have no time/knowledge/experience to monitor your finances, consider hiring a professional to do it for you and keep them accountable

Tips to Manage Cash Flow • Price for profit • Focus on higher margin products and services • Eliminate difficult customer • Spend your time looking for new business, rather than baby-sitting a slow paying customer • Learn to juggle • Time right your payments with your receivables and monitor where everything stands at any given time

Cost Savings Strategies • Analyze the supply chain • Negotiate better terms for quality, payment and volumes • Reduce or eliminate office space • Work remotely or downsize where you can • Cancel non-essential subscriptions and services • Newspaper, magazines, TV channels, etc. • Cut on business travel expenses • Consider virtual meetings

Cost Savings Strategies • Reduction of overtime • Schedule orders within normal working hours • Deferral of accounts payable • Negotiate extended payment terms with suppliers • Inventory optimization • Find the perfect balance between demand supply • Temporary freeze of new hires • Give existing employees more responsibilities

Cost Savings Strategies • Cancel or delay improvement projects • Preserve cash as you may get new restructuring ideas • Review lease contracts • Return or renegotiate payments for unused equipment/vehicles • Partner with other companies • Reduce marketing expenses without limiting exposure

Government Assistance For Your Business • Canada Emergency Business Account (CEBA) • Expires October 31 st 2020 • Canada Emergency Commercial Rent Assistance (CECRA) • Expires September 30 th 2020 • Canada Emergency Wage Subsidy (CEWS) • Expires December 19 th 2020 • Deferral of Federal & Provincial Taxes • Applicable until September 30 th 2020

Questions? Please Ask!

Andrew Unruh Business Banking Advisor Aunruh@envisionfinancial. ca (604) 991 -8303 Sacha Kayriamova Commercial Banking Advisor Skayriamova@envisionfinancial. c a (604) 996 -4592 Connect with us anytime! Email address Phone number address