By: Tomas Koneka Iindji
Every successful entrepreneur understands that cash flow is the lifeblood of their business, and that without it, the business will not survive.
In the current economic environment, effective cash flow management is crucial for any business to stay afloat. Cash flow provides the necessary funds for day-to-day operations and helps protect the business against unexpected expenses.
When discussing business cash flow, entrepreneurs and subject matter experts often refer to working capital.
Working capital refers to the funding available for a business to carry out its daily operations. This funding can come from the business itself or from external sources such as banks.
Analysing the working capital cycle is an effective tool for determining a business’ working capital needs. The working capital cycle measures the time it takes for a business to turn its net current assets into cash flow.
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