Access to Cash with Working Capital

Financial well-being April 18, 2016 By Daniel White

At First United, we want to provide the tools and resources to support you as you strive to manage and grow your business.

Cash flow is a major factor in what “makes or breaks” a business. Access to sufficient working capital allows you to manage the cash flow cycle and ensures your business is ready to take advantage of current and future growth opportunities.

As a business owner you may have asked yourself the question “If my sales and profits are up, why am I strapped for cash?” A common growth problem for any business is having access to sufficient working capital to manage cash flow needs. New sales create the need for more inventories and can result in more accounts receivable, both of which can temporarily put a strain on your cash. This is explained, below, by the cash flow cycle.

How does my business’ cash flow cycle affect my operations?

The cash flow cycle measures the length of time in days that your business’ cash is tied up in its current operating cycle. It captures the interrelationship of your sales, collections, and trade credit. Your business cash flow cycle will have different time frames, depending on various opportunities and challenges.

The cycle is measured in three stages:

Cash Flow Cycle


Here is a link to an article that I recently came across, on, which provides some additional detail on how you can determine working capital needs for businesses: How to Determine Your Working Capital Needs.

A key to success, for any business, is having enough working capital to ensure you can effectively manage the cycle in any scenario.

A working capital line, such as the one we offer at First United Bank, can give you quicker access to your cash and allow you to grow your business more quickly.

It’s our desire to empower you so that you can reach your business goals. Please contact myself or your local First United if you have questions, or if you would like to learn more.

By Daniel White

Commercial Loan Officer, First United Bank - Frisco Preston

Daniel began working at First United in March 2008. He has worked as a Trust Officer, Credit Risk Management Analyst, Senior Credit Analyst, and Commercial Loan Officer.

Daniel holds a B.S. in Finance from Southeastern Oklahoma State University. He is also a graduate of the Southwest Graduate School of Banking and a candidate in the CFA Institute's Chartered Financial Analyst Program.