Working capital is required to pay for wages, daily functions to provide the goods and services being sold. The cycle repeats where the revenues received provides new cash that can be used to finance further productions and sales and increasing the companies economic value and profitability.
As a business owner you must tightly manage the cash flow generated and what factors impact those flows. This is a business skill essential to the liquidity and long-term viability of the business. While a company can have solid income and assets and be profitable, there are times when cash is short and other financing methods needs to be implemented.
For high merchant transactions business, working capital can be accessed through your future sales via the merchant cash advance facility. The management of working capital involves managing 4 aspects within a company.
- Inventory (stock or goods still being production)
- Accounts receivable (debts that are owed to the company)
- Accounts payable (money the company owes to suppliers)
- Cash
Take a look at the Merchant Cash Advance Infographic on How it works. Apply for a FREE Quote for short-term business finance from Accrutus Capital, or call 02 9006 1327.