Where to Find Working Capital to Manage Your Company Better
There are lots of songs about working, from Working Class Hero to Working for a Living. However, no one seems to be singing about working capital and how to use it to manage your company better.
If there was such a jingle, small business owners would not be struggling so much with this issue. The ability to find working capital to manage your company better can mean the difference between just surviving and constantly thriving.
Who Offers Working Capital to Manage Your Company Better
You will find many lenders who say they are willing to help small businesses obtain working capital. Yet, when you apply for these funds, you are faced with lengthy applications, requirements for tons of collateral, and a very long wait to find out if you are approved for business capital.
Thankfully, there are cash advance companies, like Financing Solutions (www.fundmypayroll.com), that can give help you build your working capital fund without the hassle and hoopla of banks. They have a quick application process, which only takes about 15 minutes, and you can receive an answer in a few hours. In fact, more than 90 percent of those who apply are approved.
Best of all, with Financing Solutions, there is no long term commitment. This is a form of short term business funding which you can easily repay in a couple of weeks or months, when your cash flow situation improves.
The Importance of Working Capital Management
Having a sufficient amount of working capital will ensure that you can handle emergencies as well as the normal ups and downs that are standard in every small business. It can be especially beneficial for those small businesses that experience seasonal fluctuations in sales.
Properly managing your working capital is the best way to guarantee that you will always be able to make payroll, pay rent, and pay your business taxes when they become due. This becomes easier when you know how much you have and the ideal ways to use it for your small business.
One of the most crucial functions for working capital is to grow your business. It allows you to take advantage of profitable growth opportunities without transferring funds from other areas of your company. The amount you have can be used to determine the health of your business.
How to Improve Your Working Capital
Management of working capital involves getting a handle on inventory, cash, accounts receivable and accounts payable. It is really an ongoing system of checks and balances that you must watch constantly and adjust quickly when necessary.
To improve your working capital, you have to reduce the amount of money you have tied up in inventory. This is in addition to decreasing the length of time you are waiting for customer to pay you. You can do this by offering discounts and other incentives for customers who pay early or use cash. Also, you can work to better calculate your inventory needs.
Another way to improve your working capital is to contact Financing Solutions for quick business funding. They will have you singing a different tune.