Why Is My Business Profitable But Always Short of Cash?
A business can be profitable but short of cash because profit is an accounting measure recorded when a sale is made, while cash only arrives when the customer actually pays…
Cash Flow Strategies
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…
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…
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.…