One Easy Step To Improve Your Working Capital

Sue as a CFO understands the significance of improvements in working capital management and that it can generate more capital for her business, improve operational efficiency, increase profitability and potential growth.

The next obvious question now is how can Sue improve her working capital? Well, here is an easy solution. Extract raw payment data from your ERP or Finance system and send this information to a spend analytics system. Sue had a jaw-dropping moment when she saw the spend analytics dashboard and realised that she could free up £250M in cash just by changing the payment terms with their key suppliers from 30 days to 60 or 90 days and putting in place supply chain financing. The £250M freed up working capital was achieved in just one easy step by properly managing the payment terms. This additional working capital of £250M for Sue was key to fund their company’s next phase of growth by ensuring that there was enough cash to pay monthly bills, weather the economic downturn, and take advantage of expansion opportunities to improve their market share.

If you want to gain benefits similar to Sue and would like help in freeing up your working capital to fund your next phase of business growth, book a demo by clicking on the link here.