A Company's Cash Flow and It's Success are Closely Linked

Marathon Helps Companies Avoid Cash Crunches!

(PRWEB) September 26, 2004 -- Poor cash flow management skills, not a lack of business, is often the lifeline leading to a company's success. Many businesses practice late payment as a means of cash management, causing suppliers to effectively provide financing for their customers, thinking that it will create good will and help their business.

Each day a customer delays payment not only costs the supplier a significant amount in bank charges and interest but also increases the risk of non-payment. It typically doesn't buy the seller any more respect from the customer. In fact, it's quite often the reverse.

A customer's late payments can lead to write-offs and ending business relationships, which impacts the bottom line in other ways including increased need for capital reserves or borrowing, as well as collection agency and legal fees. As a result, reducing the time that cash is tied up in overdue invoices generally provides substantial overall savings, improving the annual turnover of the product or service, thus improving profits and gaining control.

If you can monitor your receivables you can focus your time on programs that directly achieve business growth, allocating time to help maintain healthy customer relations and insure your company's success story.

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