How to Boost Your Company’s Working Capital
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.