Needs Faced by facilities for Funds Retention

The success for a facility in the management of investment and its available funds depends somehow on the knowledge of needs facing the for funds retention. These needs are represented in distinguishing between fully operating a portion of the funds all the time and retaining some of which as a cash liquidity. In addition, the problems and the management of the funds vary from a facility to another according to the nature, the size, and the geographic division of the facility in addition to the amount of funds and the needs of the facility including funds sources and the extent of cash flows into it. Actually, there are several needs that are faced by the facility for funds retention, and the companies and facilities at their different kinds retain the funds in order to face them efficiently, ensuring the continuity through seizing the opportunities.

By the end of the course, participants will be able to:

What are the Needs faced by the facilities for Funds Retention?

Among the needs that are faced by the facilities for funds retention is operational needs, which are represented in sale and procurement operations. And that's where the indication of these needs varies by the variety of the nature, the activity, and the methods of sales and procurements, in addition to the extent of regularity of business inside the facility as for the balance between procurement schedule and the schedule of sales value collection.
 
Emergency Needs:

Emergency needs those which are represented in the situations that can be faced by the facilities, which are unanticipated ones. For example, sudden price rise or dramatic sales decline. And these emergency situations could be reduced through the advance management of all the internal and external cash flows, in addition to the credit operations with various funding sources.

Speculative Needs:

Speculative needs mean seizing any opportunity towards achieving unexpected profit through the provision of cash flows in order to face such possibility. And that's where the facility can seize cash deduction by the supplier or the decline of the commodity price, with the aim of effective competition or just performing an investment operation in stock market.