AmiSight 4/13: Is the Supply Chain Eating Your Cash?
We are receiving regular calls these days from companies that are digging into their lines of credit for the first time in years. What's the cause? Longer lead times for products they have to pay for in advance, need for higher inventories, and slower trucking to customers. This all results in slower cash conversion cycles.
Remember, if your business has accounts receivable and inventory, you might consider moving from a straight line of credit to an asset-based line. I wrote an article on @inc that explains the differences.