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How can I shorten my working capital cycle to improve cash flow?
June 24, 2025
9:59 am
Amiliaa
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I’ve been trying to get a better grip on our cash flow situation, and someone recently told me to look into our working capital cycle. I had honestly never heard of that before, but it makes sense — we’ve had long delays between paying suppliers and getting paid by customers. We run a small furniture workshop, and we always have materials sitting around and invoices hanging in limbo. I’m not sure where to even start fixing it, but if anyone’s dealt with this, I’d love to hear some tips on how to speed things up.

June 24, 2025
5:17 pm
Edvardd33
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Yeah, I ran into the same issue when I was helping my cousin with his wholesale electronics business. Our cash was always tied up in stock or unpaid invoices, and it really hurt our ability to reinvest. Once we figured out our working capital cycle formula, it was easier to see the problem areas. We focused on speeding up collections and negotiating longer payment terms with suppliers. There’s a great guide that helped us understand the full picture — you can read more about it here. It breaks down each part of the cycle and gives practical ways to reduce delays.

June 24, 2025
6:44 pm
emmacollin
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I’ve never really thought about the “cycle” part of working capital before, but it makes total sense after reading this. Seems like one of those behind-the-scenes things that can really affect your business without you realizing it. Threads like this are super helpful for folks like me who are just getting started.

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