Growth in your largest account is a funding request

When a big customer asks to double its volume, the cash leaves before the revenue arrives, and most of it never comes back until the relationship ends.

By Steve 5 min read
Abstract bridge artwork for Growth in your largest account is a funding request

A major customer says it wants to double its volume next year. In the sales meeting, that is a win. On the bank statement, it is an outflow that lands months before any of the associated revenue does, and one that does not reverse while the account stays at its new size. This is not a cash flow forecasting problem. It is a structural feature of how working capital behaves under growth, and it is one of the more common reasons profitable businesses run out of room precisely when things…

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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.

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