WHEN ?
There is always a chance to make things better, therefore there is always a good time to improve your WORKING CAPITAL, but there are several signals which should ring the bell. When you feel that something is not Ok, something is not according to your standards – please look into the details. Think of this list. You call them problem, we call it working capital management.
Just a few example:
- Company is making profit but the cash flow is awful. The figures are not according to the expected and the banks and owners are challenging You.
- There is not enough capital, there is no room for further investment
- Most of the time – meaning always- customers pay late
- You are your own barrier since you can not make delivery to new customers due to lack of financial resources.
- High customer fluctuation.
- Regular customer complaint, low customer satisfaction.
- Huge write Offs – burning prior investments
- Despite of large amount of stocks delivery issues occur regularly
- Production is suffering due to stock outs.
- The procurement does not perform well although your payment behavior is perfect
- Invoicing is not running well
- GM must handle collection
- Common law is stronger than corporate financial standards