Business Insights

How to boost cash without depending on external financing

The answer is: manage your suppliers and your customers. You have to watch closely your cash flow and cash cycle (what is the cash cycle? Will talk about it in a later post). In simple words you have to reduce the time it takes to collect your receivables and prolong the payment to your suppliers.

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Cash flow is nothing more than the movement of money in and out of your business, just like the flow of blood through the body. Cash is in continuous circulation through the “arteries” of the business, carrying value to its “organs”.  If the flow is stopped or severely reduced, then serious consequences result. Read more…