Management-Finance

How does WCR influence a company’s solvency?

Working Capital Requirement (WCR) is a key indicator of a company’s financial management. It measures the gap between cash receipts and cash outflows related to operations, in other words, the money tied up in inventories, trade receivables, and trade payables. This gap may seem trivial, but it has a direct impact on short-term solvency. Even […]

Management-Finance

Treasury: what alternatives to bank financing?

Cash flow isn’t just a CFO issue: it’s the keystone of your ability to invest, pay, and grow. And when a company faces increasingly rigid bank financing conditions—high interest rates, collateral requirements, and tight lending criteria—it becomes vital for a company to understand and master alternative financing solutions to secure its operations, preserve its cash […]

Management-Finance

Solutions to improve cash flow: comparison between credit insurance, factoring and debt collection companies

Given the persistent pressure on margins and cash flow, customer account management remains one of the top priorities for Finance Departments. Cash flow determines a company’s ability to invest, meet its commitments, cope with unforeseen events or simply survive. Yet, a significant portion of cash is tied up in receivables. According to the AFDCC, €1 […]

Management-Finance

How can a WCR reduction plan be integrated into a business growth strategy?

A growing company must absolutely control its cash flow. A Working Capital Requirement (WCR) reduction plan helps improve liquidity and avoid financial tensions. But how can you reduce WCR without slowing down the company’s development? Receivables management, inventory optimization, negotiation with suppliers, etc. Find out how to integrate this approach into the heart of your […]

Management-Finance

How can the BFR vary according to the sectors of activity?

Have you ever wondered how WCR can influence your day-to-day strategic decisions? Depending on your sector of activity, the necessary financing requirement can vary considerably, putting more or less pressure on your cash flow. For example, in the catering sector, where payments are often made in cash, WCR is reduced, allowing for more flexible management […]

Management-Finance

How can WCR analysis help anticipate future cash flow needs?

How to maintain healthy cash flow when financial flows are constantly changing? Working capital analysis is key. Poorly controlled working capital can lead to major difficulties: a gap between receipts and disbursements that weakens cash flow and limits investment capacity. Whether you are a manager or a CFO, analyzing and optimizing your WCR allows you […]

Management-Finance

What are the risks associated with an excessively negative BFR?

A negative WCR is often seen as a sign of good financial health. However, this situation, if not controlled, can be a trap. Indeed, a working capital requirement that is too negative can expose a company to significant risks: loss of opportunities, weakening of the financial structure, and damage to reputation. GESTION CREDIT EXPERT sheds […]

Management-Finance

Why outsource debt collection?

Outsourcing the recovery of unpaid debts can be a powerful lever for preserving a company’s financial health. This article first explores all the constituent elements of receivables and the often underestimated crucial importance of optimizing its management to guarantee the stability, growth and sustainability of a company. Then, we will comprehensively study all the benefits […]

Management-Finance

Solvency indicators to follow to reduce the risk of non-payment

In order to avoid any risk of non-payment, it is more than recommended to study the solvency of your business partners.

Management-Finance

How to calculate the DSO?

The DSO, or average payment period, is an indicator that requires particular vigilance on the part of companies. The higher the DSO, the more the company's cash flow is put at risk.