Working capital is a measure of a company’s liquidity and its ability to pay short-term debts. It is calculated as current assets minus current liabilities. A company with a lot of working capital can easily meet its short-term obligations, while a company with little working capital may have trouble paying its bills. There are several …
A factoring discount is the percentage of the invoice that is discounted when the factor buys the invoice from you. This percentage can be negotiated, and it depends on a number of factors, including how long it will take for the factor to recoup its investment in the invoice. Generally, though, you can expect a …
Asset financing is a way to get cash for your business by borrowing against the value of your assets. It can be used to finance any type of asset, including real estate, equipment, and inventory. There are different types of asset financing available, so it’s important to understand the options and choose the one that’s best for your business. This …
For businesses that are struggling to pay their bills, a receivable factoring company can offer an option. The process of converting accounts receivable and outstanding invoices into cash allows these companies enough time so they don’t have any further debt weighing down on them while still earning revenue from sales in order for the business’s …
Every businessperson, especially small-scale owners, dreams of expanding their business one day and making it to the top. But staying away from the red line is far more important than that. To avoid that, most smart owners always keep their eyes on their business by monitoring their weekly or monthly cash flow statements. These reports …
6 Ways To Make Sure Your Business Has Enough Cash All Year Round Read More »