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What one specific cash management payment strategy and one specific cash management collection strategy can you,...

What one specific cash management payment strategy and one specific cash management collection strategy can you, the Chief Financial Officer, employ to mitigate any cash shortages? Be certain to name the specific account (s) for your recommendation and the mechanics of that strategy. Include quantitative data in your response

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Answer #1

One Credit Management strategy I have will be delaying the expenditures that would be a legging strategy.

In this strategy payments related to you are credited is delayed in order to gain advantage from time value of money and the money can be invested in order to gain a higher rate of return.

One of the cash collection strategy I have is offering of the credit period that will help to gain from the early payments by our debtors from the time value of money concept.

Example-2/10 net 30 credit period

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