Cash Budget Method — Can a Loan Be Processed When Annual Receipts Are Less Than Outflows?

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Cash Budget Method — Can a Loan Be Processed When Annual Receipts Are Less Than Outflows? Vinu: Manu, I have a working capital proposal where I used the cash budget method for assessment. The peak level deficit works out to ₹50 lakhs. But the borrower has asked for only ₹30 lakhs. Now when I add up ...

Financial Red Flags That Indicate Business Trouble Ahead

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Financial Red Flags That Indicate Business Trouble Ahead Vinu: Manu, businesses usually don’t fail overnight. What are the early financial warning signs entrepreneurs should watch carefully? Manu: Correct, Vinu. Financial trouble gives signals early. The problem is most entrepreneurs ignore them. Vi...

Cash Flow Stress Testing: Preparing the Business for Uncertain Scenarios

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Business Survival Starts with Cash Flow Stress Testing Vinu: Manu, businesses prepare cash flow forecasts regularly. How is stress testing different? Manu: Cash flow forecasting assumes normal conditions, Vinu. Stress testing checks what happens when things go wrong—like delayed collections, sales d...

ROI Analysis for Entrepreneurs: Measuring What Investments Actually Pay Off

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FROI Analysis for Entrepreneurs: Measuring What Investments Actually Pay Off Vinu: Manu, I’ve invested in marketing, new equipment, and even hired more staff—but I’m not sure what’s actually giving returns. How do I measure this? Manu: That’s where FROI—Financial Return on Investment—comes in. It te...

Financial Projections: How to Estimate Future Performance Realistically

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Financial Projections: How to Estimate Future Performance Realistically Vinu: Manu, I need to prepare financial projections for my business, but I don’t want to make unrealistic numbers. How should I approach this? Manu: Good approach, Vinu. Projections should be practical, not optimistic. Start wit...