Alternatives and Tips On Working Capital Finance By Banks
Canadian business owners and financial managers seeking finance by banks or other sources are generally experiencing growth in sales and profits. That’s the good news, which is of course offset by the fact that this type of success requires additional working capital.
Liquidity has become the name of the game and ‘ cash is king’ even today never seems like a worn clich. A recent study by the Conference Board of Canada indicated that the key worries of business owners were working capital cash flow. (Also referenced were ‘ regulatory issues and competition’)
So you have assets… but can those assets generate cash flow by banks or other alternate sources.
For working capital purposes it’s all about ‘ current assets ‘ which include typically receivables and inventory. As you invest in those two assets to generate sales your working capital needs go up, and your ability to manage and turn …
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