One of the key objectives of working capital management is to ensure the liquidity of a business. Basically how quickly can it convert its assets into cash? Areas to consider to improve the working capital cycle of your business are:
· Can supplier terms be extended?
· Stock control, ensure there is enough to meet the expected level of demand but not too much where cash is tied up. Has the current crisis affected lead times?
· Effective credit control, monitor debtors and focus on cash collection.
· Check credit worthiness of customers.
There are clearly a number of challenges facing businesses currently, however there are a number of strategies businesses are adopting to survive these uncertain times and we’re here to help you and your business plan the path to recovery.
Contact one of our experts today to see how we can help you.
Queensgate helping make business more manageable, profitable and enjoyable.