| Title |
Development of a Cash-Flow Forecasting Model based on the Payment Plan for Apartment Housing Construction Projects |
| Authors |
Kim Soon-Young ; Han Choong-Hee ; Kim Kyoon-Tai ; Kim Sun-Kuk |
| Keywords |
Cash Flow ; Cash Flow Forecasting Model ; Prepayment ; Payment delay |
| Abstract |
Since the financial crisis broke out in 1997, it has become important to secure liquidity of capital in the early stage of housing construction project. However, many construction companies have failed to forecast cash flow precisely, which is prerequisite to obtain flexible cash flow.
It results from existing cash flow forecasting method which is mainly focusing on predicting profit and loss fluctuation. Under the current financing in the housing construction company, there is no proper method to forecast not only the profit and loss but also the fluctuation of the cash flow of a project. Therefore, it is difficult to guarantee the liquidity of capital in the final stage of project with regardless of factors such as prepayment and payment delay which are irrelevant to the economic feasibility but have an influence on the fluctuation of the cash flow.
This research performs an analysis on practical housing collection pattern from prepayment and payment delay and then compares it to the cash flow predicted in the early stage of feasibility analysis. Finally it proposes more accurate cash flow forecasting model in the planning phase of the project.
It can also be used to analyze and complement the initial cash flow forecasting plan, so that it can contribute to achieve accurate cash flow forecasting by reflecting real situation better and finally to enhance efficiency in the capital management. |