So much so, that I fear that many finance directors are in danger of being ‘caught in the headlights’ and not realising that there are very practical steps available to us all to minimise its impact on our ability to fund our businesses.

In many businesses, one of the biggest investments is also one of the most poorly managed ­ working capital. A renewed focus on managing working capital effectively can provide a business with much needed liquidity.

As FDs we can fall into the trap of setting policies for working capital but leaving other parts of our organisation ­ sales, operations and procurement ­ to manage it. In effect, these functions are determining the levels of cash we need to invest in our businesses on a day to day basis. While many FDs may not normally have direct influence over a number of these areas, this is the time FDs need to grab control to ensure we optimise working capital.

In many respects, the FD is the hub of the working capital wheel and, therefore, at the centre of, and driving, the processes. There are a number of improvements we can make solely within the finance function, others that need the involvement of parts of the wider organisation and a third group that requires change on the part of our customers and suppliers.

As FDs, it is our responsibility to pull all the levers to ensure that cash is maximised. Firstly, it is imperative that we achieve improvements in the aspects of working capital under our control. We also need to provide tools to allow the rest of the organisation to monitor and control cashflow and thereby make further improvements.

Throughout the business, management needs to be aware of the implications of its actions and decisions ­ ranging from the launch of new products through to factoring in working capital into customer and product profitability analyses. This shift from a pure top line and margin culture to one which includes a cash consideration will not only bring benefits in the current climate but provides a solid foundation for the future.

Under normal circumstances, working capital often provides the cheapest and most accessible source of funding for a business. In today’s environment it is essential that we take advantage of this source of internal funding before our customers and suppliers do.

Margaret Ewing is a partner and vice-chairman at Deloitte and former CFO of BAA