Optimising retail cash flow: the smart approach

While digital payments continue to increase, cash remains a significant payment method across the UK. For retailers, managing cash efficiently is all about smart business operations and optimal cash flow. 

Two levels of cash flow: why it matters 

Cash flow exists on two critical levels for retailers. First, it includes the physical movement of cash: from customer transactions at the till to secure storage and finally to your bank account. Second, it refers to your business liquidity: how quickly those cash payments become available funds you can use to invest, pay suppliers, staff, and other operational costs. 

These two aspects are linked: without efficient cash movement processes, your liquidity suffers, creating unnecessary pressure on your business operations. 

Risk factors in cash handling that delay your liquidity 

Traditional cash handling involves multiple manual processes: counting, recounting, reconciling discrepancies, preparing deposits, and physically transporting cash to the bank. Each step introduces risks of human error, theft, and - perhaps most significantly - delays in accessing your funds. These risk factors can delay your liquidity and slow down your business.  

For multi-location retailers, these challenges multiply. Many store managers still drive between locations to collect cash takings, an outdated practice that's neither safe nor necessary today. 

Smart safes transform cash into digital assets 

Digital cash solutions fundamentally change this process. When you implement a smart safe system: 

• Cash is counted and authenticated at the point of deposit. 
• Funds are credited to your account the next business day - often even before physical collection. 
• You gain immediate visibility into your cash position across all locations. 
• Cash never accumulates excessively at the point of sale. 
• Staff focus on customers rather than cash handling. 

The result? Your cash becomes a digital asset almost immediately after receipt, improving liquidity and financial visibility. 

Digitising your cash operations creates concrete opportunities to optimise your working capital. With real-time visibility and faster access to funds, you can: 

• Identify periods when excess cash could be invested or better utilised elsewhere in your business. 
• Make informed decisions between reserving cash and short-term payment obligations. 
• Reduce the time gap between receiving cash payments and having those funds available for use. 

This directly translates to greater financial flexibility and stronger operational performance. As Tim Gilissen, Operations Director of Black Label Hotels in the Netherlands, explains:

'For cash flow, it's important that money reaches our account quickly. Brink's Complete offers everything our hotels need: a smart safe, cash collection, and sufficient change money. All payment types are covered under one contract, giving us better control over cash flows while reducing administrative work. This is especially valuable with our complex setup of four hotels and three daily shifts.' 

Forecasting and planning 

This confirms the importance of cash flow as part of your entire cash management. The better you have organised and streamlined all processes around cash, the better you can predict and manage it. With optimised cash level forecasting, you can take your financial management to the next level. This advanced approach allows you to: 

• Predict cash volumes across locations and seasons 
• Plan change money requirements proactively 
• Identify opportunities to optimize working capital 
• Standardize cash processes across multiple locations