Managing working capital with receivables finance
In a recent blog post, we discussed ‘overdraft’ as a solution to adequately and effectively manage a business’ working capital. Another solution is ‘receivables finance’, which enables a supplier to collect invoices from their customers sooner than the agreed-upon terms. A receivables finance arrangement does not appear on your balance sheet, which is helpful if you […]
Managing working capital with ‘the overdraft’
When looking to manage working capital and cash flow in the most efficient way possible, there are a number of lending solutions that have been tailored specifically with working capital in mind. One of these solutions is the humble ‘overdraft’. This traditional facility provides a buffer for known cyclical or unexpected cash flow requirements. It […]
Determining your business’s capacity to borrow – working capital and quick ratios
Generally, a business’s working capital is calculated by subtracting their ‘current liabilities’ from their ‘current assets’. If this figure is found to be negative, it means a business cannot pay its bills, or self-fund its operations. To determine the liquidity of a business, a lender may utilise the ‘quick ratio’, which divides the value of […]