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Motor Retail

Cash management in challenging times

Michael Neary Michael Neary

With the acceleration of certain global trends within the automotive industry post Covid-19, dealer finance has an important part to play in the new car market in the coming years. Cash is the lifeblood of any business. During periods of difficult trading, the ability to manage cash flow on a daily basis can be the difference between success and failure.

The key message when it comes to bolstering your cash flow is to ensure you are aware of, and actively managing, the controllable factors. While July brought a surge in new registrations of 202 vehicles, the figures are approximately 14% below the same period in 2019. The implications of continued demand softness, and uncertainty in how long it may last, points to a heightened need to manage cash flow carefully to be able to weather the storm.