Accounts receivables leveraged for short-term financing


Problem:

How might inventory and accounts receivables be leveraged for short-term financing? Suppose you own a water purification company that sells and installs reverse osmosis systems for homes and businesses. You have a large profitable job lined up two months away, but after buying all of the supplies, you do not have enough capital to sustain the business until that time. What would you do?

Cash flow is important in any business but especially for small businesses. If you cannot find it in the text, look it up via the internet or UOP Library and describe each step of the cash conversion cyle and convey how you would create guidelines to improve each step of the cash conversion cycle for a small business.

Why is it important for a small business venture to gain support from prospective financers and key customers? If you started a business venture, how would you describe your venture to gain support from prospective financers and key customers?

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Other Management: Accounts receivables leveraged for short-term financing
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