Customer-to-cash

Working capital - working capital management.

(C2C).

The customer-to-cash cycle is about the trade finance cycle between an organisation and its customers.

The primary concerns of the selling organisation are normally with:

1. Mitigating payment risk
2. Accelerating the cash inflows from customers.

Improvements deliver real value

"When interest rates and inflation were lower, businesses that held higher levels of working capital had little incentive to create improvements within procure-to-pay processes, customer-to-cash processes, or inventory management.

Today, this represents a significant cost and taking action – such as reducing the time it takes to approve invoices or centralising payment terms – can deliver real value to an organisation."

Mansour Davarian, head of working capital sales, Lloyds Bank Corporate & Institutional Banking - The Treasurer - Issue 3 of 2024, page 20.

See also

• Debtor days
• Inflation
• Interest rate
• Inventory management
• Invoice
• Procure to pay cycle (P2P)
• Receivables management
• Terms
• Trade finance
• Working capital
• Working capital cycle
• Working capital management