The first cause of poor cashflow – Your cash lockup

The first cause of poor cashflow – Your cash lockup

Mar 15, 2021 | Blog, Cashflow

There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. Your lockup equals the cash that isn’t in your bank account because it’s either in...
Reducing your lock up days to free up cash

Reducing your lock up days to free up cash

Sep 15, 2020 | Blog

It’s vital for businesses to free up as much cash as possible, particularly in these tough economic times. Your ‘lock up days’ is the number of days it takes to convert your debtors, stock and work in progress into cash. A high number of lock up days means your...
Critical numbers – Your lock up days

Critical numbers – Your lock up days

Feb 3, 2020 | Blog

Your lock up days is the number of days it takes to convert your debtors, stock and work in progress into cash. The higher your lock up days, the more cash is needed in the business (either from you or the bank), and the higher the risk of losing that cash. Worse,...