Small and Medium Enterprises (SMEs) are at the heart of economic development and job creation.

Small and Medium Enterprises are also at the heart of commercial bank lending and leasing.

The primary purpose of this website is to announce a new simple framework for visualizing the cash flow of SMEs in terms of naturally recurring, sustainable cycles.  

Cash Cycle Theory 
led to the startling discovery that working capital and the current ratio routinely understate liquidity (negative working capital is not negative!) because there is an account missing from the balance sheet: CPFA--the current portion of fixed assets. Including CPFA in the calculations provides for the first time truly meaningful measures of liquidity.

The discovery of CPFA 
has now been published in 
both America's leading banking journal and leading accounting journal! This is a "must read" for all bankers, CPAs, professors--anyone dealing with financial analysis.  

The RMA Journal  (December 2015) --pictured at right
Click to read/download pdf: RMA article Negative WC

Journal of Accountancy
(April 2012)

The Book: The discovery of CPFA is only one of several revelations that emerge from the new Cash Cycle Theory.  The book provides the complete framework, practical applications, and the benefits of cash cycle theory. Click the title below to learn how cash cycle theory leads to both Better Credit & Better Sales.   

 Cash Flow 3.0—Advances in Cash Flow Lending based on Sustainable Cycles 

Available on

Presentations/Seminars: The author is available to conduct brief speaker presentations (gratis) for business associations and university courses, or multi-day seminars covering the complete cash flow cycle theory. Click the "seminar" tab above to see a sample outline. 

The seminar--Cash Flow 3.0--was launched in 2014 at MegaBank, in Jakarta. Thanks to my host Edison Mawikere and co-instructor Detamore Pussung.   

This is the professional website of Stephen M. Bartoletti
 Senior Banking Advisor and specialist in SME lending. 

© Bartoletti  August 2013, 2015