Are you a bank? Or a credit card company?
For too many small businesses, the answer is a lot closer to “yes” than “no.” Why? Accounts Receivable — the longer you finance your clients or customers, the worse it is for your business. This quote neatly sums up the problem:
“…profitability and cash flow are two very different things. I was, and remain, amazed at how many profitable companies are strangled by negative cash flow.”
What’s “normal” for Accounts Receivable?