Identifying Bottlenecks in Your Cash Flow Cycle

Every business has bottlenecks—points where cash gets stuck or unnecessarily delayed. These might be customers who pay slowly, suppliers who demand upfront payment, inventory that moves slowly, or internal approval delays. Identifying these bottlenecks is the first step to improving cash flow. To find them, map your cycle and ask: Where does cash spend the most time? Where do you have the least control? Could timing be shifted? Often the biggest bottleneck is the one customers won't pay you faster, but sometimes it's supplier terms you've accepted or inventory practices you've never questioned. Once identified, you can prioritize improvement efforts…

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