Re-imagining working capital
Small businesses rarely have more than a few weeks of cash on hand, yet many have considerable accounts receivable,
often representing 60 to 90 days of sales that are yet to be collected from their customers. A small business with $4
million in annual sales and terms of 90 days has nearly $1 million trapped in accounts receivable. Moreover, with the
pandemic, payment terms are extending rapidly as even the largest companies in the world look for ways to increase cash
on their balance sheets.
Published : 24 June, 2020
