Increase Your Cash By Decreasing Your Cash Conversion Cycle
Increase Your Cash By Decreasing Your Cash Conversion Cycle
Your business is a constant cycle of cash being invested and then received back, hopefully with a profit. This cycle is called the cash conversion cycle. Knowing how it works allows you to have less cash lost to the cycle. Most importantly, you’ll have cash available when you need it.
I’ll show you how the cycle works and why it causes cash to go down for a while when you reach for growth. Your cash conversion cycle may need to be supplemented with other cash sources that I’ll explain. Understanding the cash conversion cycle allows you to avoid cash crunches and capture opportunities.