Fundamentally, working capital is the difference between a firm’s current assets and current liabilities. A company with sufficient working capital possesses a strong financial standing. Regardless, to ensure the same, businesses are required to adopt effective working capital management strategies and put them into practice. Ideally, a business should be considerate about the internal as…
Category: Working Capital
Working Capital Loans: Important Aspects You Must Know
The primary goal of running a business is making profits, but the underlying motive from the get-go is to never run into cash flow scarcity. But, as your company evolves and grows, shortages in working capital can become a recurring problem. And it’s in these stages of scaling that companies, especially small and medium ones,…
How Can SMEs Efficiently Deal With Their Working Capital?
SMEs are perhaps the most crucial drivers of economic growth in India. According to the latest figures, there are more than 42.5 million SME units, accounting for the production of 6000+ items. However, the numbers also speak of the stiff competition that prevails in this sector. In this context, working capital management is one factor that…
Working Capital Loans & Why It Is The Best Funding Option?
Working capital is the locus around which every business operation revolves. It is not only imperative in the short-term but also a major constructive force behind a company’s growth and success. Hence, ensuring the availability of sufficient funds at all times in the form of working capital is of utmost importance. But, that’s easier said…
5 Ways To Utilise A Business Equipment Loan
Latest technology and high-quality equipment is a necessity to ensure the smooth functioning of any business venture. Irrespective of the industry, businesses must make it a point to upgrade the technology they use and replace obsolete machinery with new ones to boost quality and production. However, most of the time, due to lack of capital…
How To Pay Off A Small Business Loan?
A steady inflow of capital is what keeps a business active and propagates growth. However, business owners do not always have sufficient capital to meet their credit demands, especially when the profits are marginal. Usually, in such situations, SME owners prefer availing small business loans to meet their essential operation-oriented requirements. Though such business loans…
How To Use Working Capital Loans To Strengthen Your Business?
Working capital or operating capital is an integral component of any business. It helps business owners to keep their operations afloat by maintaining healthy cash flow. However, sometimes businesses underperform or are subject to losses, which leads to depletion of working capital. To combat the ill-effect of such a situation, business owners often avail a…
Planning To Avail A Working Capital Loan?Best Thing for Your Business
There’s a reason why working capital is widely regarded as the indicator of a company’s success. At the risk of stating the obvious, every company, small and large, needs adequate working capital to survive and scale. Several small businesses have shut down, and large companies have fallen out of competition due to lack of sufficient…
What Is The Difference Between Cash Credit And Overdraft?
Businesspersons and entrepreneurs must maintain healthy cash flow and optimum working capital at all times to keep their enterprises operational. However, that’s easier said than done! Also, the goals of optimising inventory or business expansion might never see fruition unless there are sufficient funds available. This is the reason several financial institutions offer flexible options…
How To Effectively Manage Working Capital
Disrespect the importance of working capital, and it is bound to damage the business’s financials heavily. It has no prejudice against the company’s size, the industry it falls under, or the operational strategy it practices. Poor working capital management could further translate into halting growth, or even worse, shutting down operations. It is one of…