Control of Current Assets

Cash flow Management (see previous strategy)

• distribution of payments

• discounts for early payment

• factoring

Accounts Receivable: 

• must be monitored and controlled by checking credit ratings of customers, 

• enforcing conditions of credit sales, 

• having processes in place to chase down money owed to the firm; 

Inventory management is critical to ensure: 

• working capital not tied up in slow-moving stock, 

• wasted on stock spoilage 

• an overcommitment to inventory purchases does not decrease cash reserves and firm liquidity