Contingency Funding Plan

A Contingency Funding Plan (CFP) is a strategy that organizations use to ensure they have enough cash or liquid assets to handle unexpected financial needs. Think of it as a safety net: when a business faces sudden expenses or cash flow issues, a CFP outlines how it will secure funds quickly. This might include accessing credit lines, selling assets, or tapping into reserves. By having a CFP in place, organizations can manage risks better and maintain stability even during tough financial times.