How can the turnover of capital in business and industry be accelerated?


One of the most important questions that business and financial managers always ask is:

How can the turnover of capital in business and industry be accelerated?



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Accelerating capital turnover means improving the ability to convert assets and liabilities into cash faster. This helps to improve cash flows and increase profitability. Here are some ways to accelerate the turnover of capital in business and industry:


  1. Managing inventory effectively: reduce excess inventory without compromising the ability to meet customers’ needs. Use advanced inventory management systems to help more accurately estimate the quantities required.


  1. Accelerate debt collection: As much as you can, try to reduce credit periods offered to customers or offer discounts for early payment. Or cooperate with finance companies to move risk and manage debts for them instead of shouldering this burden.


  1. Monitor and restrict credit: evaluate customers before granting them credit and set credit limits based on payment date and reliability.


  1. Improved payment periods for suppliers: While seeking to accelerate debt collection, you can also negotiate longer payment terms with suppliers, without compromising quality or service.


  1. Reduce fixed expenditures: review and reduce expenditures where possible, by dispensing with non-core assets or switching to a variable cost model where possible.


  1. Improving process effectiveness: Use advanced manufacturing methods, such as agile production, to reduce loss and increase production efficiency.


  1. Invest in technology: Use accounting systems and software to track and analyze cash flows, enabling you to make faster and more accurate decisions.


  1. Cash flow management: prepare periodic cash flow estimates and compare them with actual figures to identify areas that need improvement.


  1. Assessment and improvement of the capital structure: There may be opportunities to restructure private debt or capital to improve cash flows and reduce cost
  2. . Focus on the most profitable customers: Work with customers who pay on time and achieve higher profit margins.

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