Accounting and finance · Level 3 to 4, managers and owners
Managing working capital
The cash trapped in stock and unpaid invoices, and how to get it back.
- 1modules
- 2.5CPD hours
- 60guided minutes
- Freealways
About this course
Working capital is the money tied up in running the business day to day: stock bought but not sold, invoices raised but not paid, less what you owe suppliers but have not yet paid.
It is where most small business cash goes to die, and it is almost entirely within management control, which makes it the fastest source of cash available to a business that is short. No lender required.
What you will be able to do
- Calculate the cash conversion cycle
- Identify where cash is trapped in the cycle
- Apply practical measures to release cash from each stage
- Explain why growth increases working capital requirements
Modules
Assessment and certificate
Knowledge check after each module and a final assessment at 80 per cent, with unlimited attempts.
A free digital certificate with a verification code that any employer can check, plus an entry on your CPD record.
Questions
What is the fastest way to free up cash?
Usually collecting what you are already owed. It requires no lender, no negotiation with suppliers and no change to the product. Most businesses that feel short of cash are owed more than they need, and have simply never made chasing it anybody's actual job.
Should I just pay suppliers as late as possible?
Up to the agreed terms, yes. Beyond them, it is a false economy that costs more than it saves: you lose priority when stock is scarce, you lose settlement discounts, and eventually you lose the supplier. Small suppliers may simply be unable to carry you.