Tag Archives: cash cycle

How long do you need to fund your business??

After establishing your operating cycle, it is important to find out how long it takes for the cash to be recovered from the sale of your goods after you have paid for them. This is the cash cycle. The shorter the cycle the less cash you need to run the business. In simple terms, the cash cycle starts when you pay your supplier and ends when your customer pays you. The operating cycle starts with acquiring of inventory or raw material and ends with receipt Continue reading →