PwC's working capital research keeps landing on the same conclusion: enormous amounts of cash sit trapped in receivables, payables and inventory, and payment terms have drifted longer across many sectors. Releasing that cash is cheaper than borrowing it.
For SMEs the translation is direct. Days sales outstanding, days payable and stock turns belong on the monthly dashboard next to revenue and margin. Most improvements are boring: invoice the day the work ships, chase on a schedule, align supplier terms with customer terms. We have seen clients fund an acquisition from their own balance sheet this way.