How to Use Cash Burn Rate Calculations to Bolster Credit Decisions

As many a credit manager has learned to their sorrow, a company’s financials are not always a sure forecast of its ability to pay you 90, or even 60, days in the future. While the company’s financials may be in line with your company’s credit policies, if you’re a credit manager with a bad feeling in your gut about those financials, you may choose to resist pressure from sales and take the analysis of the customer’s creditworthiness a step further. One way to do this is by calculating the…