EPISODE · Jun 5, 2026 · 10 MIN
How Credit Limits on Customers Free Up Cash
from Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · host Fexingo
Lucas and Luna examine how small businesses can free up working capital by setting and enforcing credit limits on customers. They walk through a real example: a $2 million wholesale distributor that reduced its average receivables from 58 days to 38 days by implementing a simple tiered credit policy. They cover how to calculate a customer's credit score using payment history and industry data, the role of credit insurance, and what happens when a long-time client exceeds their limit. The episode ends with a practical framework any business owner can apply next week — no software purchase required. #CreditLimits #WorkingCapital #CashFlow #Receivables #SmallBusinessFinance #BusinessCreditPolicy #CreditScoreForCustomers #TradeCredit #CreditInsurance #PaymentTerms #DaysSalesOutstanding #CashFlowManagement #BusinessPodcast #FexingoBusiness #Business #Finance #CreditManagement #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Lucas and Luna examine how small businesses can free up working capital by setting and enforcing credit limits on customers. They walk through a real example: a $2 million wholesale distributor that reduced its average receivables from 58 days to 38 days by implementing a simple tiered credit policy. They cover how to calculate a customer's credit score using payment history and industry data, the role of credit insurance, and what happens when a long-time client exceeds their limit. The episode ends with a practical framework any business owner can apply next week — no software purchase required. #CreditLimits #WorkingCapital #CashFlow #Receivables #SmallBusinessFinance #BusinessCreditPolicy #CreditScoreForCustomers #TradeCredit #CreditInsurance #PaymentTerms #DaysSalesOutstanding #CashFlowManagement #BusinessPodcast #FexingoBusiness #Business #Finance #CreditManagement #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo
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How Credit Limits on Customers Free Up Cash
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