CFOs rely on short-term fixes to combat credit crunch
CFOs are relying on short-term fixes to relieve the pressure of the credit cruch
survey of chief financial officers, conducted by CFO Europe magazine, has found
companies are relying on short-term fixes to combat the pressure of the credit
crunch, negotiating longer payment terms with their suppliers and tightening
In addition, 92% of respondents said their customers were trying to stretch
payment terms, while 87% were seeing suppliers demand earlier payment of
‘Although it may not feel like it now, the credit crunch represents a chance
to push through reforms of working capital systems, and not just rely on ‘quick
fixes’ which aren’t sustainable in the long-term,’ Roger Bayly, KPMG
restructuring partner said.
The survey also found that only 14% of respondents said their cash flow
forecasts were on target during the past 12 months and only 5% said they didn’t
attempt any form of cash forecasting at all.