Working Capital Management for Retail – Cash Cycle

Retail needs cash to buy stock, sell it, and get paid. Managing this cycle is working capital management.

The Cycle

Buy stock (cash out) → Sell (inventory out) → Collect (cash in or receivables). Shorter cycle = less capital stuck.

Key Levers

1. Inventory – Less stock = less cash tied. But don’t run out.
2. Receivables – Collect udhar faster. Shorter credit = less wait.
3. Payables – Use supplier credit. Longer terms = more free capital.

Balance

Too much inventory or udhar = cash crunch. Too little stock = lost sales. Find the right level for your business.

Stockkeeper tracks stock and dues. Join the waitlist.