The efficiency of your accounts payable and accounts receivable processes can impact your working capital — for better or for worse. For example, a contractor who has to pay for building materials immediately but won’t be paid for three to six months is in a weak position from the start. That’s why most contractors have accounts with suppliers and require partial payment upfront from their customers.
Read more about it here, http://www.business2community.com/finance/can-optimizing-accounts-receivable-processes-strengthen-working-capital-01151342,
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