“Cash is king”… yes, I am sure we are all familiar, if not bored of hearing the same line that seems to circle its way around every finance department. Truth is, cash is in fact, the lifeblood of any business, without it no there is no way a company would be able to survive within their market.
What Does The Cash Cycle Involve ?
Cash cycle begins with sourcing raw materials, and transforming them into good for products. These are then usually sold on credit, once the money is received suppliers will be paid. This whole process needs to be managed very carefully otherwise, delayed monies from credit customers will affect a ‘business’ ability to pay suppliers who may then only supply on a cash demand basis.Read more…..