Accounts receivable management – How manufacturers can bridge the cash gap

Description

Abstract: Accounts receivable is often one of the biggest assets on a manufacturer’s balance sheet. But the faster a company is able to convert receivables to cash, the sooner it’s able to pay suppliers, employees and lenders — and the less likely it will be to draw on its line of credit to make up for working capital shortfalls. This article explains how to calculate the “cash gap” and how manufacturers can reduce it and the associated interest costs by improving collections.