Generating cash in your business
Having sufficient cash in your business provides many choices – growth, investments, dividends, pay rises, etc. The lack of cash reduces your choices quickly and threatens your survival.
Management teams often borrow money without realising that with changes to their business it may mean that borrowing is unnecessary. You have to pay borrowed money back and it costs you interest, reducing your cash availability further in the long term.
Profit, working capital and investments all impact cash generation. Increasing profitability and improving investment return is essential for cash generation over the longer term.
In the short term, reviewing and changing your working capital (debtors, creditors and stock) investment can generate significant cash (without the need to pay it back). We have sustainably generated over £50m in cash from working capital for the businesses we've worked with.
Working capital review
We use a working capital calculator tool to work out what your working capital investment should be vs what it actually is.
We are also able to give advice on how you may reduce your working capital investment.
Working capital improvement
We undertake a project to reduce your working capital investment.