In companies, the end of the year is a time for closing the fiscal year, but also for planning for the upcoming year. Now is the moment to make decisions that will have a decisive impact on our business during 2024, especially in the current scenario of uncertainty. Planning for financing becomes particularly sensitive in a rising interest rate environment, as credit tightening coincides with economic growth slowdown and significant geopolitical instability.
Ensuring the liquidity of the company increasingly requires anticipation: the only way to deal with uncertainties is to plan and make good decisions now that can help us in the next year. As a financial consultancy, Kaizen Consulting has a reliable and expert team capable of advising companies on all aspects of financing.
Anticipating in Financing
Ensuring the ability to meet the business plans for 2024 as soon as possible requires anticipating potential complications and avoiding a probable tightening of financial conditions. There are several areas where the Kaizen Consulting team can assist you right now in the financial planning for the next fiscal year:
- Calculating the financial needs for the fiscal year
- Advancing the process of searching for financing
- Exploring alternative financing options for our projects
- Preparing the financial presentations of our business
- Securing credits in advance to anticipate potential situations that may cause credit tightening
Reducing Costs, Improving Processes
The financial department analyzes purchasing forecasts for the 2024 budget. Any savings in this area has a significant impact on a company’s accounts. However, the key factor is not only purchasing at a better price, but also the possibility of improving processes to optimize resources and reduce costs. The increase in raw material prices is a decisive factor that many sectors must address when designing their business plan and adjusting their budgets.
Energy costs are another chapter of relevance in the balance sheets of many companies. Adjusting consumption, opting for renewable energies, or self-consumption can be crucial in this area.
Inflation and high interest rates penalize spending, so it is advisable to apply maximum expenditure reduction in consumption when planning the fiscal year.
Securing Financing
When planning for the year, companies need to ensure sufficient working capital financing lines for their purchases and sales. And also to cover potential growth that requires liquidity for investment. Because many companies need to continue making significant investments to fulfill their business plans. They need to optimize investment and maximize financing options: we recommend a thorough analysis of their Capex to be able to achieve more profitability in their budgets for the next year.
Specialized advice on obtaining financing ensures finding the most suitable formulas to obtain liquidity in each case. Financing sources and resources have multiplied, with options that can be tailored to virtually any business need, regardless of the size of the company. But it is crucial to have an in-depth understanding of the market, have the appropriate access, and know how to present each project to each financier. This is one of the specialties of the Kaizen Consulting team in accompanying our clients. Contact us, and we will help you plan your company’s financing.
