Working Capital Needs

Do you need working capital?  Working capital is current assets less current liabilities.  Let's say you have $100,000 in accounts receivable, $200,000 in inventory, only $50,000 in accounts payable, and no cash.  Your working capital is $250,000.  

Do you need:

• more receivables
• more inventory
• fewer payables  

None of the above. What you really need is cash, something most business people euphemistically refer to as "working capital."

Common sources of cash include equity (owner contributions), accounts payable (extending payment due dates), selling ("factoring") receivables, lines of credit, and short-term loans.

At one time or another, most businesses need additional working capital, not just to meet operating needs, but also to act on opportunities that would otherwise be lost.

What source of working capital is best for your business?  Whatever the source, you will most likely have to demonstrate how you plan to repay.  We will help you.  We will analyze your operating cycle and evaluate your working capital needs.  We will write a convincing business plan to demonstrate your opportunity, need for working capital, and repayment plan.

If you can satisfactorily demonstrate your need with numbers only, we will prepare a detailed set of financial projections suitable for that purpose.

Call today.  The sooner we begin, the sooner you will obtain the working capital you need.