Title: What Are the Benefits of a Positive Cash Conversion Cycle? | Your Business
Headings: What Are the Benefits of a Positive Cash Conversion Cycle?
What Are the Benefits of a Positive Cash Conversion Cycle?
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Wooing Lenders

Content: Companies with short cash conversion won't have problems making these payments and can take advantage of early payment discounts when they want to. Wooing Lenders
Just because a company has a short cash conversion cycle doesn't mean that they have unlimited funds. Just like any other company, the company may run into unexpected expenses or find themselves with a short amount of time to invest in a new product or growth opportunity. Many small businesses quickly fail due to seasonal business and cash shortages. For this reason, lenders heavily consider a company's cash flow when making decisions regarding amounts and rates. Showing a positive cash conversion cycle reassures lenders that you can collect on all of the profits you generate. References
Warsaw Business Journal: The Importance of Cash Flow
Ready Ratios: Cash Conversion Cycle
Resources
U.S. Small Business Administration: Business Loans -- What Lenders Look For and Tips For Winning Them Over
Writer Bio
Based in San Diego, Calif., Madison Garcia is a writer specializing in business topics.