Episode Details
Back to EpisodesEp.575 American Express Got Paid Upfront. The Real Bill Came Later.
Description
A healthy bank balance can hide a dangerous cash flow problem. In 1891, American Express introduced travelers’ cheques, allowing customers to pay upfront and redeem their funds later. The company received the cash immediately, but the financial obligation remained. Your business faces the same challenge with customer deposits and advance payments. That money may be sitting in your account, but a portion is already committed to future delivery costs. In today's episode, we break down why cash received is not always cash available to spend, how unfulfilled obligations can create unexpected liquidity pressure, and why forecasting future expenses is essential to financial stability. The Capitalista helps you understand your cash flow, track upcoming commitments, and make smarter financial decisions. Visit www.thecapitalista.com and book a call.