The COVID-19 pandemic has brought with it an unprecedented hit to businesses in the country and it now threatens to rip out the heart of enterprise Kenya.
Small and medium enterprises (SMEs) have unfortunately felt the full brunt of the subsequent economic fallout as most now face up to the risk of folding.
According to a recent survey by McKinsey & Co, a majority two-thirds of the SMEs are facing a severe cash crunch pushing them to the end of the existence cliff.
However, it has not been all doom and gloom with the past having had the promise of fruition to the local enterprises.
Initiatives to manage cash-flows by business are now expected to spell the difference between folding and business continuity as the effects of the COVID-19 pandemic filter through the economy.
Prudent funds management is not only set to favour business continuity but is also set to define the future credit accessibility by individual firms.
Present day credit scoring is now premised on the documentation of proper cash-flows management by enterprises with more prudent and diligent businesses being first in line to receive financial assistance.
Navigating periods of sharp revenue declines is also pinned on the ability of businesses to predict future cash-flows while putting aside surplus cash and near cash balances to surf the raging tide.
Managing cash-flows today is no longer an audacious task but rather a process manageable from everyday choices.
Safaricom’s M-Pesa for business is one such solution going by its seamless integration to routine operational activities.
The platform has transcended its initial start as a payment and settlement only platform to become a cash-flow management essential.It’s till feature is now set to transform into a one stop financial shop for businesses allowing business to directly transact into and out of their bank accounts.Besides enabling till to bank wallet transaction, the feature enables the real-time tracking of funds transfer while maintaining business transaction records.The quest for entrepreneurs to manage their enterprises better and more efficiently has been the force behind the use of M-Pesa services for business.The digital basis for cash-flow management will moreover guide the shift away from the handling of physical cash by businesses.Video Of The Day: | BULLDOZERS FOR SANITIZERS | Families remain in the cold after evictions from Kariobangi sewage estate
