{"id":4044,"date":"2022-05-17T14:26:23","date_gmt":"2022-05-17T13:26:23","guid":{"rendered":"https:\/\/acceleratedpayments.com\/?p=4044"},"modified":"2022-05-17T14:26:26","modified_gmt":"2022-05-17T13:26:26","slug":"60-seconds-on-working-capital","status":"publish","type":"post","link":"https:\/\/acceleratedpayments.com\/en_us\/60-seconds-on-working-capital\/","title":{"rendered":"60 Seconds On… Working Capital"},"content":{"rendered":"
Working Capital: A Quick Summary<\/strong><\/h6>\n\n\n\n

A business\u2019s working capital (WC) reflects the\u00a0amount of cash\u00a0it has at its disposal and can\u00a0deploy\u00a0almost immediately.\u00a0Working capital is\u00a0critical for any business. It is used to keep a business operating smoothly and meet all of its financial obligations within the coming year. This includes paying its trade creditors for its day-to-day trading operations.\u00a0\u00a0<\/p>\n\n\n\n

Growing businesses often suffer from a lack of cash flow due to long payment terms. However, Receivables\u00a0Finance<\/a> can be a solution to this problem. <\/p>\n\n\n\n

Working Capital is also known as…<\/strong><\/h6>\n\n\n\n

Operating liquidity; cash flow; current ratio; or net working capital. <\/p>\n\n\n\n

Why Understanding Working Capital is Important<\/strong><\/h6>\n\n\n\n

It is critical for a business to understand their cash flow status and their future requirements.  <\/p>\n\n\n\n

Many strong businesses see good profitability and growth but poor working capital when their customers or clients require long credit terms.  <\/p>\n\n\n\n

If current assets are less than current liabilities, a business is running on a cash flow deficit. When this happens, a business may find it difficult to fund its operations on a day-to-day basis. This can include paying staff, rent or creditors.  <\/p>\n\n\n\n

Understanding your WC position can be as fundamental as a sink or swim moment<\/strong>.\u00a0\u00a0<\/p>\n\n\n\n

How to Manage Working Capital<\/strong><\/h6>\n\n\n\n

Common working capital finance solutions include overdrafts, revolving credit facilities or\u00a0Receivables\u00a0Finance. These can be used simply and effectively on an ad-hoc basis to fill the gaps of your cash flow requirements.  <\/p>\n\n\n\n

Some businesses may require finance to manage seasonal fluctuations. This is where\u00a0Individual Receivables Finance \/ Selective Receivables finance can help!\u00a0\u00a0<\/p>\n\n\n\n

To find out more\u00a0about how\u00a0Receivables\u00a0Finance can help your businesses cash flow requirements, click here<\/a>. Or contact<\/a> a member of our team today. <\/p>\n\n\n\n

Key Takeaways<\/strong><\/h6>\n\n\n\n
  • WC is critical since it is needed to keep a business operating smoothly.  <\/li>
  • Why is WC so vital? This is the money that is used to cover all of a company’s short-term expenses, which are due within one year. <\/li>
  • WC is the difference between a company’s current assets (except cash) and current liabilities. <\/li>
  • WC is used to purchase inventory, pay short-term debt, and day-to-day operating expenses. <\/li>
  • Receivables Finance from Accelerated Payments is one tool your business can use to better manage your working capital. <\/li><\/ul>\n\n\n\n

    <\/p>","protected":false},"excerpt":{"rendered":"

    Working Capital: A Quick Summary A business\u2019s working capital (WC) reflects the\u00a0amount of cash\u00a0it has at its disposal and can\u00a0deploy\u00a0almost immediately.\u00a0Working capital is\u00a0critical for any business. It is used to keep a business operating smoothly and meet all of its financial obligations within the coming year. This includes paying its trade creditors for its day-to-day […]<\/p>","protected":false},"author":93,"featured_media":4045,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[77],"tags":[73,31,34],"class_list":["post-4044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cash-flow-management","tag-alternative-finance","tag-cash-flow","tag-working-capital"],"acf":[],"_links":{"self":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/4044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/comments?post=4044"}],"version-history":[{"count":9,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/4044\/revisions"}],"predecessor-version":[{"id":4184,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/posts\/4044\/revisions\/4184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/media\/4045"}],"wp:attachment":[{"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/media?parent=4044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/categories?post=4044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/acceleratedpayments.com\/en_us\/wp-json\/wp\/v2\/tags?post=4044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}