Modelling corporate financial crisis management: Optimal cashflow management in SMEs

The application of optimisation models and techniques to corporate financial crisis management is not very common, even though there are numerous theoretical and empirical models that have been applied in relation to financial optimisation theory and practice, and cashflow management techniques. This research develops a cashflow optimisation technique for SMEs in an abrupt financial crisis resulting from natural or man-made disasters such as fire, flood, storm, etc. The development and application of such a dynamic model is particularly important due to the frequency and severity of natural and man-made disasters in the various economic sectors of Australian small business communities. The implications of the model's results for financial crisis management are discussed.