Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
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<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>Adam will have to consider how he is going to fund this cash shortage. Mostlikely, he will have to consider approaching his bank <strong>for</strong> additional funding. Inaddition, there are two important points to note here. Firstly, the bank is mostlikely to request details of the assumptions in the <strong>for</strong>ecast. Secondly, if thebusiness were to request additional funds of only the extra RM3,267, therewould be no “buffer” in the event some of the anticipated cashfl ows changed(e.g. interest rates rose and the interest expense increased).TIPOnce the <strong>for</strong>ecast is completed, you can run some “what if” scenarios tomeasure how reactive your business cash fl ows will be to certainchanges in events, such as decrease in sales or increase in fuel costs.This will show you how quickly you may run out of cash if any ofthese events occur77Chapter 6 p66-78 Eng.indd 778/15/11 5:02:25 PM
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