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Cash flow for entrepreneurs part VI – customers’ cash

28/02/2018

Our final edition of Cash Flow for Entrepreneurs is aimed at FinTech founders. We look at TransferWise, the UK based consumer FX platform, and how its customer cash float distorts its statutory reported cash flow, and at Paysafe, until recently a FTSE250 public company, that discloses the impact of “payments working capital” on its cash flow.

Accounting practice allows segregated cash to be combined with own cash in cash flow statements. So FinTech founders need to be sure to strip it out when engaging with potential investors, to avoid the charge of attempting to flatter their cash flow.

 

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