Liquidity projections or liquidity forecast is an estimation of company’s expected future cash flows. Such cash flows may be in the form of both, payables and receivables. Liquidity projections often serve as an indication to the management about how viable or/and profitable the company’s operations are going to be in the near-future. Also, such projections also would help the management take a call on whether there needs to be any intervention made to modify certain operations or processes to address any issues with the cash flows.
In today’s times of the pandemic-related economic distress, the importance of accurate liquidity projections cannot be overstated. This is because for most businesses, there would be a certain level of recurring costs that they continue to incur, such as ones on office rentals, overheads, and salaries, the cash inflows would tend to be very uncertain. By accurately predicting future cash flows, businesses can prepare in advance to optimise the cash position of the organisation. A surplus cash position provides an opportunity to gainfully deploy the funds. The knowledge of a deficit cash position would help you address the deficit in advance at a much lower cost.
In order to have accurate liquidity projections for businesses, paycorp.io can prove to be immensely beneficial. When your business uses the paycorp.io technology for processing payments as well as collections, it also highlights the position of your cash inflows and outflows at all times on a real-time basis. Thus, using our technology enables you to monitor the net cash flow of your business whenever you are required to do so.
Additionally, paycorp.io provides ERP extension APIs which allow you to integrate our product seamlessly within your ERP systems. Therefore, you can initiate any payment or collection from within your ERP system, and the same would be processed through our technology to your sponsor bank. Also, the status of payment reaches your ERP the moment it is received by your sponsor bank on an instantaneous basis. Thus, your ERP is always up to date with the latest status of your transactions.
As a result, using the paycorp.io payments technology ensures a high level of predictability of your near term cashflow positions. The collection mandates setup using the paycorp.io technology enables you to identify the projected collection for the week, month and quarter. If the technology is integrated within the ERP system, you would be able to access such information via your ERP in any format that you desire. Through this, you would be able to have an easily readable ring-side view of comparison of receivables vs payables for the days, weeks and months to follow with high levels of accuracy. This is a powerful decision enabler for the senior management of your organisation.
Whether you are a small local enterprise or a large multinational company, the convenience with which you can create liquidity projections with the highest possible level of accuracy would decide how apt your management decisions for the future are bound to be. By enabling you to generate such projections in an informed manner through the use of technology, paycorp.io would empower you to have accurate liquidity projects through multi-factor considerations and past data inputs.
Revolutionize Digital Payments with Paycorp.io
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