Adjusting Microfin for the Cashflow Impact of COVID-19
This month, Marketlinks is highlighting the economic impacts of COVID-19. We welcome your submissions on this topic. This resource was originally posted on FinDev Gateway and was authored by Howard Brady.
Papers published recently explore microfinance institutions' (MFIs') operational and client-specific recommendations in response to the global COVID-19 disease caused by the novel coronavirus pandemic.
This paper provides some insight on how to use the financial projection software, Microfin, in determining the MFI's financial and cash flow implications once an operational decision has been made.
Business operations can suffer accounting losses for months and even years and still thrive. Amazon and Uber are just two such examples. However, without cash to pay employees, suppliers, and eventually financiers, the operations will come to a grinding halt. Thus, MFIs need to project the impact that cash inflows and outflows will have on their business viability and immediately communicate those impact scenarios to lenders, financiers, central banks, with clarity, transparency, and frequency if they are going to survive.
The Adjusting Microfin for the Cashflow Impact of COVID-19 paper is available to read or download below.