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The Trapped Capital Problem: What $2 Million on Your Balance Sheet Actually Means

The Trapped Capital Problem: What $2 Million on Your Balance Sheet Actually Means

Golden Pear Provider Corner
• 17 min
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In this episode of Golden Pear Provider Corner, we dive into the hidden complexities of the "Trapped Capital Problem." While your balance sheet may show $2 million in assets, the reality is far different. I explore how PI receivables, often sitting for over 400 days, distort your financial planning and decision-making. These assets are not liquid; they're promises tied up in a legal timeline that doesn't align with your operational needs. We'll discuss the true value of these receivables, the impact of inflation, and the decisions you might be making based on misleading numbers. Join me as we unravel this costly issue and introduce our Trapped Capital Calculator to help you understand your practice's financial landscape.