Monthly Archives: April 2015

Cash Cycles – Do you understand yours?

Nickels Dimes and Pennies Spread Out

The cash cycle incorporates the time it takes to pay for products and services from suppliers, the time products are in inventory, and the time it takes to collect from customers.  Importers often have to pay for goods at the time of shipment, carry 1-2 months of inventory and wait 30-45 days to get paid.  …

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Posted in Business Best Practices, CASH - We help you get it®

What is working capital & why does it matter?

Profit Spelled Out Using Scrabble Squares

Working capital is a term that financial folks toss around, but its meaning may not be clear to others.   Textbooks refer to working capital as the difference between current assets and current liabilities.  Current assets are those that will probably convert to cash within one year.  Current liabilities are those that will have to be paid within one year. …

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