Current Trends in Working Capital Management

Flash back almost three years ago, to the “technical” end of the Great Recession in June of 2009. The depth of the financial crisis was just beginning to be felt, and banks were tightening the reins on credit, which resulted in a credit crunch that made it nearly impossible for many businesses to obtain the capital they needed to grow, much less keep their operations going.

In this environment, cash conservation became the name of the game for many CFOs. To try to squeeze more cash out of their supply chains, businesses focused on tightening collection of receivables, stretching out their payables and reducing inventory.

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