The project runs 14 weeks. The invoice goes out in week 15.

Most businesses negotiate payment terms and chase debtors. The larger pool of trapped cash usually sits upstream of the invoice, where nobody is measuring it.

By Steve 5 min read
Abstract bridge artwork for The project runs 14 weeks. The invoice goes out in week 15.

A profitable business can run out of money by growing. Everyone knows this in the abstract, and most owners assume the culprit is slow payers. So the effort goes into the visible half of the problem: tightening terms, chasing debtors, escalating to the client’s finance team. Meanwhile the larger pool of trapped cash sits in the half nobody has a report for: the gap between spending money on work and being in a position to ask for it. In a project or professional services business, that gap is usually longer…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Operations

Scroll to Top