Forecasting today is basic Econometrics – this much is known. Yet, the human exists in this process – tinkering with variables and doubting results. As although cash flow forecasting is highly methodological, its predictive nature leaves great room for subjectivity. And it is these spaces that become filled by the maker’s own judgment and flair.
Pay Late, Collect Early” is a business mantra that most businesses have been taught to follow. But this strategy can also come at a cost. Delayed payments to vendors could mean delayed supplies because many smaller vendors would need the cash to keep their machines going.
The International Financial Services Centres Authority (IFSCA), established at GIFT City, Gujarat, has floated guidelines to set up International Trade Finance Service (ITFS) platforms. These platforms will facilitate trade finance between exporters and importers, through financiers from across the globe, in a currency of their choice and at the lowest possible rates discovered through a transparent, online auction mechanism.