Claire’s business is growing – not by leaps and bounds overnight, but slow and steady wins the race, right?

If everything stays on track, she’ll need to expand to bigger premises next year.

She’s planning to take out a bank loan to cover all the extra equipment she’ll need to purchase.

Computers, desks, and chairs for the extra office employees

Milling machines and robotic arms for the factory floor

More shelving for the warehouse

She needs to put her company in the best position, so they can borrow at a good APR.

One thing she should keep an eye on is her Creditor Turnover Ratio, a key measure of creditworthiness.

He didn’t even have to go on Dragon’s Den.

The investor should be infusing Stephen’s firm with capital in just 3 months.

Until then, Stephen knows he needs to keep the lights on.

He knows he can delay payments to his suppliers to help with this.  He’s already had those conversations with his key suppliers.

But he also knows he needs to keep an eye on things so his firm still looks attractive to the investor in 3 months’ time, to avoid the investor pulling out.

If he keeps his Creditor Turnover Ratio on his dashboard, he’ll be able to keep that in check.

It will go down as he extends terms with his suppliers temporarily; he’ll be able to make sure it doesn’t drop too much.

Intrigued? Read all about How your Creditor Turnover Ratio Can Help You in my latest blog, which is part 2 of my cash flow series.

Just as with part 1 (How your Debtor Turnover Ratio Can Help You), we start from nil, so don’t let the title put you off. It’s all explained for you in the post.

This is the latest in my bigger series exploring different metrics and how you can use them to make more data-led decisions in your business.

Empower yourself!

Using your numbers to help make your business better

Do you wish you understood how to use your data to make decisions more confidently?

That's what I'm here to help with.