Working Capital Receivables is the business practice of collecting payments on a timely basis from customers for goods and services purchased. This cash flow allows businesses to pay their bills, maintain inventory levels, hire and train staff, invest in new opportunities, and ultimately stay competitive. It’s important to understand that receivables don’t only apply to goods or services that were recently sold; they also include payments owed from past invoices that have yet to be paid by clients. This means that it is critical to establish an effective system to track and manage customer payment cycles – that way you can get paid faster and manage your cash flow better.