Fiducia TogetherWorking capital cycle
How many days your money is tied up between paying suppliers and being paid.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
The cycle is stock days plus debtor days minus creditor days — the number of days of funding the business needs to operate.
Why it matters
It converts working capital into a single number you can act on, and multiplying it by daily costs tells you how much cash the business needs to hold.
What it looks like in practice
Shortening it by ten days on £500,000 of annual costs releases around £14,000, permanently, without selling anything more.
What to watch out for
Extending creditor days as the lever. It works and it spends supplier goodwill, which is worth more than the interest.
Where to get proper advice
Your accountant, who can produce most of these from data they already hold.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.