--- title: "Receivables and Working Capital Management | ALMERA" description: "Management systems that make the effect of receivables on working capital, financing period and the cash cycle visible and measurable." url: "https://almerakredirisk.com/en/areas-of-expertise/receivables-working-capital/" language: "en" updated: "2026-10-20 10:34:27" --- [All Areas of Expertise](https://almerakredirisk.com/en/areas-of-expertise/) AREA OF EXPERTISE 02 # Receivables and Working Capital Management A receivable is the part of a company’s capital that is deployed with the customer. 01 — 09 SYSTEM MAP 1. [01 Know the Customer](https://almerakredirisk.com/en/areas-of-expertise/customer-assessment/) 1. [02 Manage the Capital](https://almerakredirisk.com/en/areas-of-expertise/receivables-working-capital/) 1. [03 Systematise Collection](https://almerakredirisk.com/en/areas-of-expertise/collection-management/) 1. [04 Manage Risk and Profitability](https://almerakredirisk.com/en/areas-of-expertise/risk-profitability-credit-sales/) 1. [05 Set the Limit](https://almerakredirisk.com/en/areas-of-expertise/customer-credit-limits/) 1. [06 Monitor the Risk](https://almerakredirisk.com/en/areas-of-expertise/credit-risk-early-warning/) 1. [07 Strengthen with Collateral](https://almerakredirisk.com/en/areas-of-expertise/collateral-management/) 1. [08 Restructure and Resolve](https://almerakredirisk.com/en/areas-of-expertise/problem-receivables-restructuring/) 1. [09 Recover and Learn](https://almerakredirisk.com/en/areas-of-expertise/receivables-recovery-wind-down/) EXECUTIVE SUMMARY ## Executive Summary A credit sale makes part of the company’s capital available to the customer for a period of time. So the core question of receivables management is not only how much was sold, but how much capital was tied up, how long it stayed with the customer and when it returned to the company’s cash cycle. ## Key Management Areas 4 topics 01 ### The size of receivables also shows the capital in use If receivables grow faster than sales, the company’s working capital needs rise too. The size, ageing and concentration of the receivables portfolio are assessed alongside the company’s financial resilience. 02 ### Payment terms are also a capital allocation decision Every extra day of payment terms granted to a customer means capital returns to the company later. The gap between supplier and customer terms creates the working capital gap the company has to finance. > “In a well-designed system, a company does not unknowingly become its customers’ bank.” 03 ### Open account is a controlled trading tool, not permanent financing Open-account balances that keep rolling over and never close can, over time, become part of the customer’s working capital. This “open-account build-up” is made visible and manageable. 04 ### The receivables portfolio is managed beyond the total balance Ageing, customer concentration, contractual terms versus actual payment dates, financing period and capital in use with the customer are tracked together. WITH ALMERA ## What changes when ALMERA comes in? 1. 01 The sales–receivables–cash conversion relationship and its effect on working capital are made visible. 1. 02 Receivables ageing, concentrations, open-account build-up and actual financing periods are analysed. 1. 03 A Receivables and Working Capital Management System is set up that measures the capital in use with customers. ## THE ALMERA VIEW > A receivable is the part of a company’s capital that is deployed with the customer. > Real financial strength comes from a structure in which sales turn back into cash without consuming capital. ## Frequently Asked Questions ### Q1 Why is receivables management a working capital issue? Because in a credit sale, part of the company’s capital stays tied up with the customer until collection. ### Q2 Why is it important to track open account separately? An open-account balance that keeps rolling over can stop being a temporary trading tool and become a permanent source of financing for the customer. DECISION CHAIN [All Areas of Expertise](https://almerakredirisk.com/en/areas-of-expertise/) [PREVIOUS AREA 01 Customer Profiling and Assessment Systems](https://almerakredirisk.com/en/areas-of-expertise/customer-assessment/) [NEXT AREA 03 Collection Management Systems](https://almerakredirisk.com/en/areas-of-expertise/collection-management/)