Ever wondered why some businesses in Eastleigh seem to move money at a completely different speed?

I recently listened to a conversation with Dr King'ori that got me thinking about something we often overlook in bookkeeping:

Trade receivables.

One of the interesting points from the conversation was how Somali business culture places a strong emphasis on circulating money.

Money doesn't just sit.

It moves.

It supports another person in the community.

It funds another transaction.

It helps someone buy stock.

And trust plays a major role in making that possible.

Now connect that idea to business finance.

Suppose you sell goods worth KSh 500,000 to a trusted customer.

But they don't pay you today.

They owe you.

That's a trade receivable.

To many business owners, that's simply:

"Money I'm waiting for."

But strategically, it can be much more than that.

That receivable represents economic value you've already created.

And if you manage it properly, it can help you keep the business moving.

You can:

→ Extend credit to reliable customers and win more business.

→ Use predictable receivables to plan your working capital.

→ Negotiate better terms with suppliers.

→ And, where appropriate, use invoice financing to unlock cash before customers pay.

This is one reason trade credit can be powerful, especially where access to traditional financing isn't always easy.

But there's a catch.

Receivables only become an asset when you can actually collect them.

KSh 5 million sitting in "Accounts Receivable" doesn't help much if nobody knows when—or whether—it will be paid.

That's why good receivables management matters.

Know:

Who owes you.

How much they owe.

When they promised to pay.

How long they've actually taken to pay.

And whether they're still creditworthy.

This is where bookkeeping stops being just about recording transactions.

Your receivables tell you something about the quality of your sales.

You may have growing revenue...

but worsening cash flow.

You may have more customers...

but customers who take longer and longer to pay.

You may look profitable on paper...

while struggling to pay suppliers.

So perhaps one lesson we can take from the way successful trading communities use trust, relationships and the circulation of money is this:

Don't just ask:

"How much did we sell?"

Ask:

"How quickly can those sales become cash?"

Because sales create revenue.

But collections create liquidity.

And sometimes, the difference between a growing business and a struggling one is not how much it sells...

but how well it manages the money it is waiting to receive.

Hi, my name is Eliezer Munene, a seasoned bookkeeper helping founders avoid up to 40% of costly financial mistakes.

If your sales are growing but your cash flow still feels tight, your receivables may be telling you something.