Working Capital Finance Options for UK SMEs
Working capital finance is any form of funding that helps a business cover the gap between paying its costs and collecting payment from customers – and for most growing UK…
Negative Working Capital: When It’s a Problem and When It Isn’t
Negative working capital means your business has more current liabilities than current assets – and despite what your instincts might tell you, that is not always a bad thing. For…
What Payment Terms Should a Small Business Set?
The right payment terms for your small business depend on your industry norms, your cash position, and your negotiating power – but for most UK SMEs, 14 to 30 days…
How to Extend DPO Without Damaging Supplier Relationships
Extending your days payable outstanding (DPO) means keeping cash in your business for longer by taking more time to pay suppliers – but doing it badly can cost you the…
Accounts Receivable Turnover Ratio: Definition, Formula and How to Use It
The accounts receivable turnover ratio tells you how many times per year your business collects its average outstanding receivables – in plain terms, how efficiently you are turning invoices into…
Debtor Days vs DSO: Are They the Same Thing?
Yes – debtor days and days sales outstanding (DSO) are essentially the same metric, measuring the average number of days it takes your customers to pay you after you invoice…
How to Reduce Your DSO: 9 Practical Strategies That Work
Reducing your DSO starts with invoicing the same day you deliver, then systematically removing every friction point between your invoice and your customer’s payment. For UK SMEs, late payment is…
What Is a Good Cash Conversion Cycle? Industry Benchmarks and How to Judge Yours
A good cash conversion cycle is one that falls within a reasonable range of your industry average and is stable or improving over time – there is no single number…
Working Capital vs Cash Flow: What’s the Difference?
Working capital is the difference between your current assets and current liabilities at a specific point in time, while cash flow is the movement of money into and out of…
Cash Conversion Cycle: The Complete Guide for UK SMEs
The cash conversion cycle (CCC) measures how many days it takes your business to turn the money you spend on stock and operations back into cash in your bank account.…