Accounting/Finance:

 Require downpayment for orders and payment terms for the balance.

Since the primary concern of the business is its running finances, requesting
downpayments from clients and having specified payment terms may assist the owners
increase their cash on hand. Because the nature of the business is similar to that of a
merchandising company, cash is required in order for them to obtain products from suppliers
that are demanded by clients. The usual set-up is that the customers will first order the set of
products to Hanani Company, after which the firm would order from their suppliers and pay
for the ordered things first. When clients request large quantities of items, the owners face
financial issues since obtaining the products from vendors needs a large outflow of money.
As a result, the owners resort to borrowing money, often from friends, to supplement their
financial resources.

One answer to this problem is to request a down payment beforehand, especially if the
order is of a huge amount. The downpayment will help the owners gather enough money to
order the items from the suppliers since the quantity of cash they will need to bear will be
reduced. Having fixed payment terms will also speed up the business's cash operating cycle,
resulting in better accounts receivable turnover and more liquidity.

 Avail loan from financial institutions with low interest rates.

When the owners run into financial troubles, they initially turn to their friends for help.
Individuals do not always have accessible money to lend, therefore not having somebody to
borrow from may result in a worse financial situation. Thus, borrowing from financial
institutions will help the firm meet its financial obligations. However, the company should
first consider their alternatives in terms of which institution to borrow from since they should
pick those with lower interest rates to reduce their interest payments. Being a member of
financial cooperatives may also aid businesses when they need to raise a large sum of money
since these cooperatives give financial assistance on reasonable conditions.
 Problem/Issue Objective Point Person Date
Implemented
Shortage in financial To reduce the quantity of
funds to acquire the cash that the company General Manager/ 3 months to 6
demand of the need to bear in Financial Manager months
customers from the purchasing products and
suppliers. to fasten the cash
operating cycle by 20%.

 Require
downpayment from
the customers before
they can order set of
products.
 Provide fixed
payment terms that
the customers should
strictly follow like
2/10, 1/15, n/30.
 Send memorandum
letter to the existing
customers to inform
them with the new
policy.
 Immediately
introduce the
downpayment and
fixed payment terms
to new customers.