How to Boost Your Com­pany’s Work­ing Cap­i­tal

Trillions - - Content -

Work­ing cap­i­tal is the block of money your busi­ness has on hand to deal with all day-to-day op­er­a­tions. If you don’t have enough work­ing cap­i­tal, your com­pany can’t grow or is at risk from un­ex­pected cash flow events.

Ev­ery­day ex­penses can run from as small as of­fice sup­plies to as large as rent, util­i­ties, emer­gency re­pairs, main­te­nance and non-cap­i­tal pur­chases. Work­ing cap­i­tal is the money you can use to take care of those ex­penses.

Cal­cu­lat­ing your avail­able work­ing cap­i­tal is as sim­ple as sub­tract­ing your cur­rent li­a­bil­i­ties from your cur­rent as­sets. Those cur­rent as­sets can in­clude ac­counts re­ceiv­able, the value of in­ven­tory you have on hand and any cash your busi­ness may have. Cur­rent li­a­bil­i­ties in­clude ac­counts payable, debts and any ex­penses your busi­ness needs to pay for. When your work­ing cap­i­tal is high, your com­pany is usu­ally in rel­a­tively good fi­nan­cial shape. When it’s low, other steps may be needed to sta­bi­lize the en­ter­prise.

As with many sim­i­lar things on a per­sonal ba­sis, when your work­ing cap­i­tal is high enough, it is eas­ier to se­cure loans at low in­ter­est rates when you need them. Those needs could be for emer­gency sit­u­a­tions where a prob­lem has emerged out of nowhere. They could also be for in­vest­ments that could al­low your com­pany to ex­pand its of­fer­ings or ge­o­graphic reach or to help hire short-term per­son­nel to take care of a spe­cial job op­por­tu­nity. Ei­ther way, hav­ing more work­ing cap­i­tal avail­able means your busi­ness is stronger, both for the short term and for the long run.

One com­pany that is spe­cial­ized in find­ing ways to mon­e­tize those cur­rent as­sets in your bal­ance sheet quickly is Draw­pay, a Utah-based busi­ness of­fer­ing ad­vanced fi­nan­cial ser­vices and tech­nolo­gies to help your com­pany get at the cash val­ues be­hind those as­sets and put them to work as part of your work­ing cap­i­tal.

Draw­pay of­fers a sim­ple and easy to use fac­tor­ing & Visa debit card pro­gram to get paid quicker, free up work­ing cap­i­tal and dis­burse funds more eas­ily at lower cost.

Bid Ocean and the North Amer­ica Pro­cure­ment Coun­cil have teamed up with Draw­pay to help our mem­bers im­prove their cash flow al­most instantly and re­duce the cost and time re­quired to dis­burse funds for their busi­ness.

Get­ting started is easy. Just signup on­line us­ing the Re­fer­ral Code 9821 at www.draw­pay.com.

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