Ep.575 American Express Got Paid Upfront. The Real Bill Came Later.

A healthy bank balance can hide a dangerous cash flow problem. In 1891, American Express introduced travelers’ cheques, allowing customers to pay upfront and redeem their funds later. The company received the cash immediately, but the financial obligation remained. Your business faces the same challenge with customer deposits and advance payments. That money may be sitting in your account, but a portion is already committed to future delivery costs. In today's episode, we break down why cash ...