The Business Cycle

The business cycle depicts the relationship between a business owner’s investments and drawings, the assets used to generate income, the return on assets and cash flow. Changing cash gains and drains can have a massive impact on a business’s performance.

Cash Gains

Faster Collection

Decreases in stock or work in progress

Slower payment of suppliers

Cash Drains

Slow collection of debtors

Increase in stock or work in progress

Business loan repayments

Business tax payments

Faster payment of suppliers

Business 101 Cycle