Poor management of working capital may trigger unexpected cash shortfalls that can cripple a business. This course discusses how to avoid these problems by maintaining tighter control over working capital.Working Capital Managementdoes so with specific recommendations for how to manage cash, receivables, inventory, and payables. The course goes even further, describing how to achieve the ultimate goal of zero working capital.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the conditions that can lead to zero working capital.
Identify the proper type of financing to be used for different working capital conditions.
Specify the sources of information used for the development of a cash forecast.
Recognize the benefits of cash concentration and the types of available cash sweeps.
State the characteristics of the different types of short-term investments.
Specify how the receivables investment will change in conjunction with differences in payment terms granted.
Identify the possible contents of a credit rating system and how the scoring is organized.
Recognize the circumstances under which software can be used to enhance collection activities.
Specify the structure of the measurements used to monitor accounts receivable.
State the activities that can be used to reduce the overall investment in inventory.
Recognize the activities required to ensure the success of a produce to order system.
Specify the behavioral effects of using inventory measurements.
Identify the different types of float.
State the different types of signals that may be sent to a supplier as part of the process of obtaining more credit.
Specify the operational requirements demanded by lenders for asset-based lending arrangements.
Recognize the contents of a borrowing base calculation.
Major Topics
Working Capital Concepts
Cash and Investment Management
Receivables Management
Inventory Management
Payables Management
Asset-Based Lending
Insurance for the Home Business
