Customer capital valuation

Working Capital – The Forgotten Value Driver in Your Business  October 20, 2016 – 05:37 pm
Balance sheet management is not fun. It is much more exciting to land a big order or project. Managing receivables and payables is something company owners leave to the accountants. This is a mistake. When companies are growing, letting receivables run can lead to a cash crunch that can derail things. Moreover, a tremendous amount of cash (and consequently value) is locked into your working capital. Unlocking it means more free cash flow for debt repayment, reinvestment, or issuing dividends. Potential buyers notice companies that generate free cash flow, and pay a premium for them. So how do you unlock this cash?

Be Disciplined When Granting Credit

It all starts with your credit granting policies. You wouldn’t lend money on an interest free basis to anyone, so why allow bad credits as customers? Yet, so many companies take on new customers without even checking their payment histories. The product or service your company provides delivers specific value so you should get paid within a reasonable time frame. Therefore, qualifying potential customers based on their financial capabilities, payment history, and references just makes sense. It always feels better to turn down a bad credit than to chase after a bad credit after you’ve performed the work. Have a documented credit granting procedure, and then practice it religiously to avoid costly mistakes.

Source: contraquo

South-Western Educational Pub Competing for Customers and Capital
Book (South-Western Educational Pub)

You might also like:

CPA Sebring FL 33870 -- Carlos R Roman Sebring Florida CPA
CPA Sebring FL 33870 -- Carlos R Roman Sebring Florida CPA
Healthy Body = Functional Body. Hollywood Look Side Effect: Healthy Function
Healthy Body = Functional Body. Hollywood Look Side Effect: Healthy Function
House Session 2011-12-14 (20:53:08-21:35:35)
House Session 2011-12-14 (20:53:08-21:35:35)

Enron eMail from Sherron Watkins

Enron eMail from Sherron Watkins
Dear Mr. Lay,
Has Enron become a risky place to work? For those of us who didn't get rich over the last few years, can we afford to stay?
Skilling's abrupt departure will raise suspicions of accounting improprieties and valuation issues. Enron has been very aggressive in its accounting--most notably the Raptor transactions and the Condor vehic...talized with Enron stock.' . . . . . 'No, no, no, you must have it all wrong, it can't be that, that's just too bad, too fraudulent, surely AA & Co. wouldn't let them get away with that?' 'Go back to the drawing board, it's got to be something else. But find it!' . . . . . 'Hey, just in case you might be right, try and find some insiders or 'redeployed' former employees to validate your theory.'

China copyright centre moves to protect stage works  — AsiaOne
She said that her center is planning to provide copyright evaluation services in the second half of the year in "a key move to help good scripts get to capital markets and secure funding". Despite growing legal rights, writers and performers have yet …

Oxford University Press, USA The Search for Value: Measuring the Company's Cost of Capital
Book (Oxford University Press, USA)
The Best VC Pitch Shows the VC How Theyll Make Money
The Best VC Pitch Shows the VC How Theyll Make Money
Property For Sale in the UK: near to Portree Isle of Skye 5 GBP Commercial
Property For Sale in the UK: near to Portree Isle of Skye 500000 GBP Commercial
Freddie Mac Hiring Multifamily Professionals
Freddie Mac Hiring Multifamily Professionals
Sector Update: Financial
Sector Update: Financial
E-Tip: The Capital Value Process
E-Tip: The Capital Value Process
Sep 20th Rob Slee Chicago event - In the search of Midas Touch sponsored by 678 Partners
Sep 20th Rob Slee Chicago event - In the search of Midas Touch sponsored by 678 Partners

Related posts:

  1. Human capital valuation
  2. Customer capital reporting
  3. Customer capital acquitions