The importance of cash cycle and calculation of working capital management in smes

The article discusses the modern SME finance, which needs a dynamic and skilled manager in administrative management, the accounting and finance, with knowledge of the days needed to cover the cash cycle and the capital required to operate in the short term, calculation necessary to determine if you have enough money or if you will need financing and its exact value, failure figures of SMEs in Latin America are overwhelming, eighty percent of them go bankrupt in less than five years largely due to poor management, management is required to even think about how to strengthen the company with systems such as leasing, factoring or triangulation, in Colombia there is even talk of creating a capital market and an alternative stock market for SMEs.