Ken Yager Featured in the Commercial Factor

The article, written by Ken Yager, founder and president of Newpoint Advisors Corporation, delves into the critical importance of cash flow management within the factoring industry. Factoring, which provides immediate working capital to businesses, relies heavily on the proficient management of funds to ensure financial stability for both the factoring firms and their clients. The piece emphasizes the necessity of understanding financial instruments, market trends, and client-specific needs for factoring professionals to balance fund availability and strategic deployment effectively.

Key to this discussion is the introduction of the 13-week cash flow model, a forecasting tool that has been a cornerstone in financial management long before the advent of computer spreadsheets. This model, which covers a financial quarter, is heralded for its precision in cash collateral reporting and its acceptance in bankruptcy cases worldwide. It serves as a vital tool for management, enabling a deeper understanding of cash flow and aiding in communication with stakeholders such as factors. Despite its complexity, especially for those with low financial literacy, the model’s widespread use underscores its effectiveness in managing and forecasting cash flow, crucial for preventing and addressing financial mismanagement.

The article further explores the application of the 13-week cash flow model in various scenarios, including risk management, growth phases, and operational challenges. It underlines the model’s role in facilitating informed, strategic decision-making by providing a clear picture of potential cash shortfalls and surpluses. This forward-looking approach is invaluable for navigating the complexities of funding client cash flow needs.

For industry professionals, such as underwriters and business development officers, the model is a critical asset in assessing financial viability, making informed credit decisions, and tailoring solutions to client needs. Account executives and relationship managers also benefit from the insights provided by the model, enabling them to offer strategic advice and support tailored to each client’s unique situation.

The article concludes by highlighting the ongoing evolution within the factoring industry, including the exploration of innovative financing options and the strengthening of advisory roles to clients. Effective cash flow management is presented as a foundational element of success, positioning factoring professionals as indispensable advisors in fostering financial stability and building trust with clients.

Click here to read the article.

← Insights & News