Are Late Payments Draining Your Cash Flow? Strategies to Reduce WCR
In this webinar, industry experts Kevin Appleby (COO & Podcast Host, GrowCFO), Nathaniel Hobson (Head of Partnerships, Agicap), and Susana Serrano-Davey (Experienced CFO, Executive Coach & Mentor, GrowCFO) addressed the critical challenge of managing working capital requirements (WCR) in today’s business environment. The discussion centered on how late payments significantly impact business cash flow and liquidity, creating operational constraints and limiting growth opportunities for companies of all sizes.
The panel explored the multifaceted nature of working capital management, emphasizing that effective strategies must balance customer relationships with financial discipline. They shared practical approaches that finance leaders can implement immediately to optimize cash conversion cycles, reduce dependency on external financing, and build more resilient business operations. The experts highlighted that in the current economic climate, businesses that proactively manage their working capital gain a competitive advantage through enhanced financial flexibility and improved profitability.
Highlights:
- Late payments represent a systemic business challenge, creating cash flow bottlenecks that force companies to seek costly external financing and potentially delay their own payment obligations to suppliers.
- Effective credit control processes are essential, including clear payment terms, automated invoicing systems, regular follow-ups, and escalation procedures for persistent late payers.
- Technology solutions play a crucial role in working capital optimization by providing real-time visibility into receivables, automating payment reminders, and enhancing cash flow forecasting accuracy.
- Supply chain financing options such as reverse factoring, dynamic discounting, and invoice financing can help businesses optimize payment terms while maintaining strong supplier relationships.
- Building a cash-conscious organizational culture requires cross-departmental education, aligned incentives, and regular communication about the importance of working capital management.
- Proactive cash flow forecasting enables businesses to anticipate potential liquidity gaps, prepare for seasonal fluctuations, and make informed decisions about investments and financing needs.
Watch Back on Demand
15% OFF Agicap cashflow management software
Agicap offers cash flow management software that centralizes financial transactions, synchronizing with banking and ERP systems for real-time data. It includes features like cash flow forecasting, scenario modeling, key indicator calculations, dashboards, report exporting, and tools for expedited collections and reduced payment delays through personalized, automated recovery plans.
Responses