2 min read
What it means
The cash conversion cycle adds the days stock sits and the days customers take to pay, minus the days you take to pay suppliers. It shows how long your cash is locked in the operating cycle. See the guide.
Why it matters for your company
A long cycle ties up cash and drives the need for working-capital finance. Shorten it by turning stock faster, collecting sooner, and taking fair supplier terms. Use the cash conversion cycle calculator.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
How do I shorten the cash conversion cycle?
Reduce stock that sits too long, collect from customers faster, and take reasonable supplier terms. Each shaves days off the cycle and frees cash.
Why does the cash conversion cycle matter?
It drives how much working capital you need. A long cycle locks up cash even in a profitable business, which is exactly what short-term finance is designed to fund.
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What is the cash conversion cycle and why does it matter?
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.