Home Forums MYC Forum What factors have the biggest impact on the length of the working capital cycle

2 replies, 3 voices Last updated by Miller Grace 2 months, 2 weeks ago
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  • #530489

    Edvardd Ley
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    @Edvardd33

    Totally feel you on that. A few years back, I helped a friend who owned a café, and we saw something similar—supplier payments were due in 20 days, but customers took up to 45 days to pay. The gap was a killer. From what I’ve read and seen, delays in receivables and high inventory levels can seriously drag out your cash cycle. If you’re looking to dig deeper into this, this article really helped me get a clearer picture of how it all ties together, especially in simpler terms — working capital cycle
    . Also, sometimes just negotiating better payment terms with suppliers or using tools like invoice factoring can make a big difference, even for smaller operations.

    #530502

    Miller Grace
    Participant
    @Aurelia

    Just chiming in here — I don’t have a business myself, but I’ve always been fascinated by how inventory and supplier relationships affect finances. A friend of mine runs a bike repair shop, and he keeps talking about how ordering parts in bulk saves money but slows cash movement. Never thought these small choices could mess with the whole flow of things. Cool to see people sharing real-life stuff here, gives perspective beyond just theory.

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