by Dr Lisa | Dr Lisa Lang, factoring receivables, receivables factoring, throughput, truly variable costs
Question: Should I factor (sell) my receivables? I could use the cash, but the cost seems too high. Answer: This question is hard to answer without more information, so let’s look at an example: Let’s say it costs you $40 to make a product you typically sell for $100....
by Dr Lisa | cash to cash cycle time, DBR, drum buffer rope, factoring receivables, mafia offer, maximizing cash flow, maximizing profitability, receivables factoring
Continuing our cash velocity discussion started on March 16, 2007Yesterday we discussed how offering a discount can reduce cash to cash cycle time and today we will discuss an alternative.Another approach, which leads to similar results is receivables factoring....
by Dr Lisa | cash flow, cash to cash cycle time, eliyahu m goldratt, factoring receivables, mafia offer, maximizing cash flow, maximizing profitability, theory of constraints, throughput accounting
Should I factor (sell) my receivables? I could use the cash, but the cost seems too high.This question is hard to answer without more information, so let’s look at an example:Let’s say it costs you $40 to make a product you typically sell for $100. If you could get...
