• Jackson Payne

Optimize your working capital

Updated: Jun 11, 2020

Look for every opportunity to increase cash. How fast are you collecting on Accounts Receivable?

You might need to dial for dollars. Also consider offering early-pay discounts to get paid faster. Cash is more important than profit margin in a crisis.

How fast are you paying your Accounts Payable? Can you slow these payments, negotiate longer or more flexible terms, or pay in installments?

You might run into roadblocks with your customers and vendors, as they will be dealing with the same issues. Remember, most of your customers and suppliers are in the same situation.

Choose the path of candor and transparency to work through these challenges together so you will both be stronger when the crisis passes.

Get a firm grasp of your inventory position and optimize inventory turns to conserve cash flow, while being mindful of potential supply chain disruptions. Confirm lead times and ensure you have your backlog inventory requirements secured.

90-Day GAME PLAN for Cash Flow part3 #smallbusinessfinance #Cashflow #wolcottconsulting


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