Cash or Credit: Cash In Hand is Worth Two in the Books.

And we are now back at the issue of cash flow management… having come full circle, but simply skipped out the expensive bit where your little business extends credit and thereby finances a larger business. You have received payment immediately after invoicing the goods and your customer has achieved the discount, or through factoring, the extended credit terms they were wanting. The challenge of cash or credit is solved to both parties’ satisfaction.

With some simple ideas, instead of receiving $1000 in sixty days, you received $910 immediately and had working capital. Hey presto! This working capital gave you the facility to have $1457.47 at the end of that same sixty day time period! Cash in the hand is worth two in the books, well almost two…

As we all learn in business, the numbers never lie.

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