# Managing Payables & Working Capital
Cash management is a two-sided game: what comes **in** and what goes **out**.
## Payables
Time your payments to subs and suppliers against your collections, and negotiate **terms**. (Know your state's rules on paying subs — "pay-when-paid" has legal limits.)
## Working capital
**Working capital** = current assets − current liabilities — your buffer to bridge the gap. A **line of credit** can cover short-term crunches. Don't fund growth purely on **overbillings**; that money belongs to the job, not your pocket.
**Takeaway:** Match what you pay out to what's coming in, and keep a working-capital buffer for the gap.
> *Educational content — not legal, financial, or accounting advice. Run your numbers with your CPA.*
