How I Freed $3.25M in Cash Without Growing Revenue
April 4, 2026 · 7 min read · By Josh Menold
When I took over The CHE Companies, working capital was sitting at $4 million. Within months, I had it at $750,000.
That's $3.25 million in freed cash. No new revenue. No layoffs. No cost cuts. I didn't grow the business by a single dollar to find that money. It was already there — just trapped in the cycle.
What Is Working Capital (Really)?
The textbook says: current assets minus current liabilities. What it actually is: cash that's stuck in the process of running your business.
Cash sitting in unpaid invoices. Cash sitting in materials you bought but haven't used. Cash sitting in work you've completed but haven't billed. Every dollar trapped there is a dollar not in your bank account.
The Four Levers
1. Accounts Receivable — Collect Faster
We tightened payment terms, invoiced the day work was completed (not next week), and started calling on day 31. We offered 2% discounts for 10-day payment. DSO dropped from 50+ to under 30.
2. Accounts Payable — Optimize Timing
We stopped paying early. If terms were Net 30, we paid on day 30. We negotiated Net 45 with key vendors. We consolidated payment runs to once per week. We used credit cards where possible for 30 extra days of float plus cash back.
3. Work in Progress — Bill Faster
We found hundreds of thousands in completed work that hadn't been invoiced. We implemented weekly WIP reviews and a rule: no work sits unbilled for more than 7 days. The cash impact was immediate.
4. Deposits — Get Cash First
We required deposits before starting work. 25-50% depending on the job and customer history. This alone shifted hundreds of thousands from “cash we need to float” to “cash we already have.”
What $3.25M Means for a $70M Company
That freed cash meant:
- No need for a revolving line of credit (saving interest)
- Ability to take on larger projects without cash crunches
- Negotiating power with vendors (we could pay early for discounts when it made sense)
- Breathing room — the CEO could focus on growth instead of scrambling for payroll
This Is Available in Your Business Too
Almost every business I walk into has 10-30% of their annual revenue trapped in working capital that could be freed. For a $2M business, that's $200K-$600K. For a $10M business, it's $1M-$3M.
You don't need a CFO to start. You need to know your numbers:
- What's your AR aging? Use our AR Aging Tracker to find out.
- When do you pay vendors? Are you paying early? Stop.
- Do you have unbilled work? Ask your team today.
- Do you require deposits? If not, start this week.
Learn the Full Playbook
The Working Capital Mastery course walks through each lever in detail with specific actions for each week.
Take the Course (6 lessons, 40 min) →