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Working capital and why it matters

Optimising working capital means improving how cash flows in and out of your business. When done right, it gives you more control, less stress, and stronger foundations for growth.

 

Build momentum, one step at a time

This transformation framework breaks your journey into clear, focused steps. You’ll start by unlocking quick wins, then move on to system improvements that strengthen your business for the long term.

 

Quick Wins

Recover cash hiding in plain sight

Inventory Optimisation

Free up the cash sitting in your stockroom

Quick win checklist:

☐ Liquidate dead stock—even at a loss

☐ Negotiate consignment terms for slow movers

☐ Apply just-in-time ordering for fast movers

☐ Set automatic reorder points

☐ Reduce safety stock to reflect actual demand

ABC Inventory Method

Use the ABC approach to focus your time and attention where it matters most.

These are your highest-value items. They require frequent reordering, close forecasting, and minimal stockouts.

  • 20% of SKUs
  • 70% of inventory value
  • Management focus: Daily monitoring with tight controls

These are moderately important items. They should be reviewed regularly and may benefit from bulk ordering.

  • 30% of SKUs
  • 25% of inventory value
  • Management focus: Weekly review with moderate controls

These are low-value items. They can be ordered less frequently and managed with minimal oversight.

  • 50% of SKUs
  • 5% of inventory value
  • Management focus: Monthly check-ins with simple rules

Payables Strategy

Pay smarter without damaging supplier relationships

 

Build Your Cash Flow Fortress

Systemise your success

 

Track and sustain your progress

Measure what matters every month with a monthly health check scorecard. Keep your business healthy with these five vital signs. The numbers are illustrative, adjust the targets to suit your needs.

 

Stay on track with smart habits

You've made strong progress, now keep it going. Here are four areas where small improvements can protect your cash flow and strengthen your business over time.

 

 

¹ The numbers are illustrative. The general idea is to shorten the time it takes to receive money by providing incentives and risk management mechanisms.

The actions and suggestions provided are intended as general guidance only. They may not be suitable for all businesses or circumstances. Mastercard does not guarantee specific outcomes and recommends consulting with a qualified advisor before implementing changes to your business operations.