Good accounts can still consume working capital.
Payroll, fuel, affiliates, and credit-card obligations may be due weeks before an invoice is paid. Growth with slow-paying accounts can actually increase short-term cash pressure.
A corporate client may have strong volume, good rates, and dependable travel while still paying on terms that push cash far beyond the date the work was performed. The operator carries the trip costs during that gap.
As the account grows, the cash required to support it can grow too. The same customer that improves monthly revenue can therefore create more short-term pressure if collections do not move at the same pace.
- Net terms stretching cash
- Volume growing faster than collections
- Current cash funding completed trips
One question worth asking
How much working capital does your largest slow-paying account require from you each month?