Cash Gap Management

Cash Gap is one of those things that trips up a lot of small businesses. If there is anything but "payment up front" going on in your business you have a cash gap. If you are selling to your customers on "terms" (eg payment in 30, 60 or 90 days) then you have a big cash gap. Cash Gap means you are "the bank". You are using your money to purchase goods and materials... while letting your payment, from the customer, sit in their bank not yours, for a number of days. The problem with you being the bank is that an actual bank... you don't charge a fee for letting other people use your money. The "model business" for cash gap management is Dell Computers. If you have ever bought a Dell you know t

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