Medro Updates

Separate Inventory Recovery Assumptions From the Capital Decision

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors. When a capital request depends on selling stock or returning it to a supplier, identify the evidence behind each expected receipt. Record the quantity, expected recovery method, relevant agreement and unresolved condition. Keep cash refunds, supplier credits and unsold stock separate in the decision brief. Ask the appropriate professionals to review contractual and accounting questions. A financing conversation is more useful when the owner can explain which recovery assumptions would change the request. Discuss the capital objective at https://medroadvisors.com/advisory/