Friday, March 28, 2008

Watch Your Receivables Like A Hawk

Former IBM and Chrysler Corp. finance chief Jerry York spoke at the recent CFO Rising conference in Orlando. Per CFO Magazine, one message he delivered that is applicable to companies of all sizes related to accounts receivable.

York warned credit collection departments to stay on top of credit terms and receivables, "because in a contracting economy, receivables become a concern." He cautioned: "Watch your receivables like a hawk."
With a recession highly likely and a credit crunch gaining strength, it's more important than ever to maximize cash flow and minimize working capital because money tied up in working capital is money not available to grow the company.

For small businesses without access to bank financing, factoring can be an effective solution for accelerating cash flow when both your accounts receivable and DSOs are increasing. The cost of factoring can be offset by the discounts you can take with your own suppliers by paying their invoices sooner.

Are your accounts receivable and DSOs increasing? Do you need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!

Tags : accounts receivable , Jerry York , CFO Magazine , DSO , working capital , factoring

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