By Rob Basso on
11/10/2010 1:08 PM
As businesses across the country slowly emerge from the worst economic crisis since the Great Depression, a stark reality is hitting many of them. The reality is that even though sales are rebounding and companies may even be showing positive earnings, they’re starved for cash. What’s going on? The problem is they’re experiencing working capital pressure.
In fact, you may find yourself in this situation. After stretching vendors as far as you can, as orders pick up, so must inventory and accounts receivable, which increases the cash that your company has tied up in working capital. For many companies that do not carry inventory, or have become lean managers of inventory, this pressure is solely the result of the growth in accounts receivable that comes with the uptick in sales...