Working capital-or current assets minus current liabilities �� is essential for a small business�� fundamental financial health. It serves multiple Financing purposes, such as purchasing new inventory, hiring employees, paying creditors, or funding new projects. Whatever you need working capital for, it��s a key part of the way you handle your day-to-day operations, which makes it crucial that you maintain positive working capital.Read more
Category: Working Capital
Do you Feel the Pinch? You��re not alone. Here��s why
Working capital is measured based on efficiency of a business and its short term financial position. Every month, business owners need to meet current liabilities or short-term debts such as payment to vendors, suppliers, payroll, accounts payable or bills in order to stay afloat. To efficiently manage expenses, working capital should never keep declining over a long period of time.Read more
How Small Business Owners Can Bridge the Working Capital Gap
Working capital is a tricky thing to manage and not to mention, boring, too. The definition itself is an equation of business terms current assets minus current liabilities which requires even more definitions. Currents assets are the resources that can be converted into cash within a year, while current liabilities are your company��s debt obligations that need to be repaid in a year. Basically, something that affects all companies, big or small, in any industry in any part of the world.Read more
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