Working Capital

This article defines the Cash Conversion Cycle, breaks down its calculation, and explains how founders can manipulate inventory, receivables, and payables to improve cash flow.

An honest look at credit facilities, defining how these flexible financial agreements work and distinguishing them from traditional term loans for startup founders managing working capital.

Liquid assets are cash or items easily converted to cash. Understanding them is vital for managing runway, payroll, and avoiding the trap of being profitable but insolvent.

An explanation of working capital, detailing why profitable companies fail due to poor liquidity and how to manage the timing of cash inflows and outflows.