What to Do When Your Operating Working Capital is Low
There is no one-size-fits-all operating manual for most businesses. For example, no one really tells you what to do when your operating working capital is low. You are left to figure it out on your own.
Cash flow issues can make or break a business. When your operating working capital is low, you are in danger of running out of money, which is one of the most common reasons why many businesses fail. Fortunately, you do have options.
What is Operating Working Capital and why is it So Important
Operating working capital is defined as what a business has in non-interest bearing current assets minus non-interest charging liabilities. It is equal to the cash, accounts receivable and inventory, excluding accounts payable and accruals. Basically, it’s the money you have to work with after bills have been paid.
Your operating working capital is used as an indication of your growth potential and short term financial health. Without it, you may find yourself unable to meet payroll, pay off creditors and purchase supplies.
Who Offers Help with Operating Working Capital
Keeping your business profitable is your first priority and while there is no instruction manual, you can learn from others. Many companies have found success by turning to a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com), to help with cash shortages.
Financing Solutions offer both a cash advance and operating working line of credit financing products that are excellent for businesses with sales greater than $150,000 in revenue. The best part is you don’t need to fill out tedious forms or wait weeks for a decision. You will get an answer in the same day so you know if you are approved quickly, which allows you to get on with running your business.
In addition, there is no long term commitment. You can repay the fast business financing you receive in a few days or months. With this kind of flexibility, it’s the ideal solution for managing your operating capital.
Tips on Operating Your Business More Efficiently
When your business operates efficiently, you are able to easily improve customer satisfaction, reduce costs and compete in today’s global marketplace. Still, this can be tough if you have to focus on just trying to survive. Here are some easy to adopt tips to help:
One thing you must do is to respond quickly to changes and trends. This can be done most effectively when your IT networks are reliable, secure and key information is accessible to all employees. In this way, you foster the collaboration and speed necessary to beat the competition.
You also must deliver fast, knowledgeable service to satisfy customers. Studies have shown that in today’s digital world, consumers expect companies to respond within a few hours to their requests and complaints. Those who don’t get this right risk losing customers to competitors.
Of course, the best way to run your business efficiently is to contact Financing Solutions. They will give you the immediate business funding you need to manage working capital and grow your business.