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The cash cycle will be increased by: Buying less raw materials to have on hand. Having a larger percentage of customers paying with cash instead

The cash cycle will be increased by:

  • Buying less raw materials to have on hand.

  • Having a larger percentage of customers paying with cash instead of credit.

  • Paying your suppliers earlier to receive the discount they offer.

  • Improving the cash discounts given to customers who pay their account early.

  • Ordering raw materials inventory only when you need it.

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