Cash Conversion Cycle: How to Free Cash and Fund Growth | Peter Boolkah

Send us Fan MailGrowth can consume cash surprisingly quickly.A business may be profitable on paper and still struggle to pay its bills because too much money is trapped in inventory and unpaid customer invoices.In this solo episode, Peter Boolkah explains the cash conversion cycle or CCC and how it affects a company’s liquidity, resilience and ability to fund growth.The basic formula is:Inventory Days + Receivable Days − Payable Days = Cash Conversion CyclePeter breaks down each component and explains how to improve it without damaging the wider operation.You’ll discover:What the cash conversion cycle measuresWhy revenue growth can increase pressure on cashHow inventory ties money up inside the businessWhy better demand forecasting can reduce excess stockHow invoicing and credit control affect receivable daysWhy agreed supplier terms can help protect working capitalHow poor inventory, credit and payment practices create cash pressureWhy reducing the cycle requires cooperation across the businessHow cash discipline supports more sustainable growthFor founder-led businesses, the wider question is whether cash management operates through dependable systems or still relies on the founder personally monitoring stock, chasing invoices and negotiating every supplier payment.A shorter, properly managed cash conversion cycle can release money already trapped inside the operation and reduce the company’s dependence on emergency funding or on the founder repeatedly plugging cash gaps.FINANCIAL INFORMATION NOTEThis episode provides general business education rather than accounting, financial or investment advice. Cash-conversion calculations and appropriate working-capital policies vary by business model. Obtain advice based on your company’s circumstances before changing inventory, credit or supplier-payment policies.CONNECT WITH PETER BOOLKAHWebsite: https://www.boolkah.comLinkedIn: https://www.linkedin.com/in/boolkahInstagram: https://www.instagram.com/pboolkah/Facebook: https://www.facebook.com/BoolkahX: https://twitter.com/boolkahABOUT PETER BOOLKAHPeter Boolkah is a business coach, author and speaker who has spent more than 20 years helping business owners build stronger, more valuable businesses that do not depend on them for everything.He is the creator of The Hamster Wheel Trap® and author of Your Business Sucks: Build a Business That Works Without Destroying Your Life.Peter works with founders and leadership teams on the issues that ultimately determine whether a business creates freedom or becomes another job: leadership, founder dependency, people, profit, execution, scaling, exit readiness and enterprise value.His approach is direct, practical and built around one simple question:Do you own the business, or does the business own you?Learn more at https://www.boolkah.com