Optimising Cash Flow Management with Defacto

1. Diversify your sources of financing 

Diversification of financing sources is crucial to reducing financial risk. However, it's not simply a matter of choosing different financing options, but of selecting them wisely according to the company's specific needs. 

 

For example, bank loans may be suitable for medium-term needs, while venture capital may be more appropriate for financing long-term expansion projects. Short-term financing is particularly attractive, as it enables SMEs to benefit from a rapid injection of cash precisely when they need it most. And because it's generally non-dilutive, you don't have to sacrifice equity in the process. 

 

Defacto's offer provides great flexibility in terms of short-term cash flow financing.You can use your financing capacity according to your needs, just as you would with a bank overdraft.

 

The ideal is to have a combination of funding sources. This may include long-term equity or substantial bank loans, but also shorter-term options to take advantage of urgent opportunities.

2. Build your financial strategy

Effective financial planning requires a thorough understanding of the company's cash flows, as well as the external factors that could influence them. Cashlab uses advanced cash flow analysis tools to help companies develop accurate forecasts and identify critical moments when additional financing needs may arise. 

 

This proactive approach enables companies to make informed decisions and prepare for future contingencies. This is where the word “strategic” comes in - good financial management is not something you do passively or after the event. 

 

Draw up a solid financial plan that doesn't just keep you afloat, but allows you to activate the main levers for growth to make a greater impact. In other words, think like an entrepreneur, especially when it comes to finance.

3. Make your financial management more flexible

Flexibility is essential to adapt to market fluctuations and unforeseen changes. You never really know what lies ahead, so you need to be able to adapt to new pressures and opportunities. A five-year financial plan will already be out of date in the first year.

 

You need the tools to make rapid changes. That means cash flow analysis software, but also flexible financing options to complement your existing cash flow. You can't jeopardise your long-term vision for immediate gains, but neither should you miss out on interesting opportunities simply because you're short of cash. 

 

Our vision at Defacto is to be an additional arrow in the overall financing strategy of our SME and ETI partners. And to offer a flexible, revolving financing solution alongside traditional financiers to provide greater flexibility in terms of repayment and use of funds. And to better align their financial obligations with their cash flow.

 

4. Monitor and analyse cash flow

Finally, continuous cash flow monitoring is essential to detect trends and potential risks. Thanks to tools that enable companies to monitor their cash flows in real time, identify deviations from forecasts and take corrective action quickly if necessary.

 

You need to be able to do this in real time and with a minimum of effort. It's not enough to wait for the quarterly financial results to realise that a change was needed two months ago. Without becoming excessive or obsessive, you need to keep an eye on your cash flow at all times. 

 

Managing financing levers in line with cash flow is a complex process that requires a combination of financial expertise, strategic planning and operational flexibility. There has never been a more important time to carefully manage a company's cash flow. But it's also easier than ever, if you have the right allies and the right resources.  

 

At Defacto, we are committed to supporting our customers at every stage of this process, providing them with the advice and personalised solutions they need to successfully achieve their financial goals.

Defacto is a finance company specialising in short-term financing. It offers flexible, real-time financing to SMEs in France, Germany, Spain, Belgium and the Netherlands. 

Thanks to their automated scoring system, they can assess eligibility in 27 seconds. They can then collect receivables instantly or defer payment of supplier invoices. In 24 months of activity, they have financed over €500 million for more than 10,000 SMEs.