How to conquer the most common cash flow challenges during economic downturn

Benjamin Verschuere, Co-founder & CIO at Treasure Financial, gave this presentation at the FP&A Summit in San Diego.

With rumors of a potential recession hitting the US over the next 12 months, it’s no surprise that a burning topic in finance right now is how to survive an economic downturn.

So, I wanted to address this topic deeper and explore what exactly we mean by ‘downturn’, along with some common cash flow challenges (and solutions) to help you get through it.

Is a recession on the horizon?

Most CFOs already expect a downturn to come over the next 12 months. According to a recent poll, 84% of CFOs said they expected a downturn in the next six months. 90% expected a downturn to occur in the next 12 months.

This data tells us that a recession or downturn is highly expected by the wider CFO community.

The Federal Reserve model also shows high odds of recession:

As you can see, they are putting the other recession to happen over the next 12 months, north of 60, or close to 60%.