Working capital is an essential element in evaluating the business’s long-term financial health, irrespective of its size. It is a simple metric where companies can analyse their runway by comparing their current assets against their liabilities. A high working capital translates into sufficient liquidity, operational competence, and raised profits. The pandemic outbreak has raised arduous…
Category: Working Capital
Looking To Measure Your Company’s Financial Health?
The available working capital of a business provides a measure of its short-term financial standing. When faced with a shortage of working capital, enterprises often opt for working capital loans to fulfil this inadequacy. However, lending institutions scrutinise a business’s financial health before they extend financing of this sort. It is, therefore, crucial that business…
How To Get Working Capital Loans In India?
The working capital of a business is an indicator of its operational efficiency and short-term financial standing. A lack of optimum working capital obstructs supply chain management and hinders a company’s day-to-day activities. Needless to say, enterprises must maintain a steady flow of working capital. When faced with a shortage of adequate working capital, business…
Types Of Business Loans
In Mark Twain’s words, “The lack of money is the root cause of all evil”, especially when we know how a liquidity crisis can deter businesses from achieving their goals. But as an entrepreneur, you need not worry about NOT meeting your business objectives, especially when you have access to various types of business loans…
5 Steps To Apply For MSME Loan
MSME sector is one of the key drivers in the Indian economy that accelerates its growth. In 2020, it contributed about 45% of the country’s total industrial output and 40% to its exports. However, despite their significance in the current economic system, micro, small and medium enterprises still face a continual working capital crunch. So,…
Union Budget 2021: Extension On MSME Schemes
In light of the COVID-19 pandemic, the Finance Ministry had launched the Emergency Credit Line Guarantee Scheme (ECLGS) as a part of the Atma Nirbhar package on 12 November 2020 to fillip growth in India’s MSME sector. Under this scheme, the government proposed Rs. 20,000 crore debt provision and equity infusion worth Rs. 50,000 crore.…
How Can Invoice Financing Increase Your Business Cash Flow?
As a business owner, you should always remember – “Revenue is vanity, profit is sanity, but cash is king”. Cash is indispensable because most of the operational activities depend on it. To be precise, the growth and liquidity of a company depends on how readily cash is available in a business. However, often due to…
How Supply Chain Finance Funds Future Success?
Only firms that are innovative and flexible in terms of catering to their consumers’ ever-changing needs can survive a competitive market. However, as a business owner, you may often find it challenging to keep up with the evolving consumer demands due to several reasons, including financial bottlenecks along the supply chain. One may argue that…
The Importance Of A Responsible Working Capital Management
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…
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,…