Welcome to our video series on the cash conversion cycle. In these videos you will find information on what the cash conversion cycle is, why it is imperative to minimise the cycle, how to minimise the cycle, and the types of finance available to help you do so. We recommend watching these videos in sequence from top to bottom.
How and why you need to minimise your cash conversion cycle
The first video in this series looks at the reasons why minimising your cash conversion cycle is critical to your success. This video explains:
1. What the cash conversion cycle is 2. Why long cycles result in cash flow problems 3. Why loans don't solve cash flow problems 4. What the ideal cash conversion cycle looks like 5. How to achieve a zero or negative cash conversion cycle 6. How short cash conversion cycles allow you to build your business and wealth as quickly and easily as possible
Comparing Invoice Finance facilities
Having learnt that Invoice Finance is one of the two financing tools available to minimise your cash conversion cycle, the second video delves into the two main types of Invoice Finance - "Full Book" and "Selective" Invoice Finance. This video explains:
1. How Full Book and Selective Invoice Financing works 2. What disapprovals are and how they impact the cost of finance 3. Why some businesses fall into the "Debtor Financing Trap" and how to avoid falling victim 4. How to offer your clients payment terms without sacrificing your cash flows 5. What to understand before searching for a facility for your business
Invoice Finance FAQ's
The third video answers some common questions and concerns that business owners have regarding Invoice Financing. This video discusses the following topics:
1. How long does the application process take? 2. It seems expensive 3. The interest rate seems high 4. What will my customers think about me using an invoice finance facility? 5. I don't want to get into a lock-in contract 6. I've heard that factoring is bad
Supplier Finance introduction
Supplier Finance allows you to minimise your cash conversion cycle on your supplier side. The fourth video in this series introduces supplier finance and discusses:
1. What is supplier finance and how it works 2. Who can use a supplier finance facility 3. The advantages of supplier finance over debtor finance 4. The benefits of supplier finance to client businesses 5. The benefits of supplier finance to supplier businesses
Comparing Supplier Finance facilities
The fifth video in this series looks at the different types of supplier finance. Topics covered are:
1. Trade finance vs Supply Chain finance - what are the differences? 2. How to create win-win situations between your business and your supplier businesses 3. Features and limits of supplier finance facilities that you need to be aware of
Do not delay - take action now
The final video in this series is a reminder that the most costly habit of all business is that of "delay". Having the knowledge to find the right facility for your business is critical to success, but success is only realised through action.
Thank you for viewing our content - we hope that you have benefited from the information provided. If you would like more information on how to manage business cash flows, visit the "Resources" tab.
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