Nearly every business grasps the theory of why working capital is essential to business success. Nevertheless, converting the theory into a working business strategy is often the downfall of an organization. So the question remains: How can an organization bridge the gap between the idea of sandbagging working capital and the actual practice?
Bridging the Working Capital Gap
Small and medium sized businesses can topple quickly without a viable source of working capital. Yet, even large corporations are susceptible to losing enormous sums of revenue by lacking proper working capital in volatile economic markets. The problem lies in finding an affordable yet effective means of managing capital. For some organizations, controlling business finance is more difficult than performing the main function of the business itself.
STRADA Capital would like to present this series of blogs that will focus on how businesses—large and small—can integrate practical strategies to advance business interest via the use of preserving working capital.
The Foundation of Working Capital
Even if a business secures an outside source of working capital, it is important to understand that this is only a temporary measure. The Small Business Administration reports that insufficient capital is among the chief reasons why businesses collapse. After securing a source of working capital, four business finance accounts must serve as the foundation for continual working capital management. They are:
– Cash
– Inventory
– Accounts Receivable
– Accounts Payable
In the upcoming blogs, we will discuss these four at length.
STRADA Capital specializes in providing businesses with the working capital required to win in competitive markets. Our financing has saved our customers thousands of dollars while allowing them to remain liquid. We can help your firm with a leasing strategy that is more conducive to modern markets. If you would like additional information about applying for financing fill out this short application. STRADA Capital is also a provider of equipment financing (equipment leasing), construction equipment leasing, and truck leasing.
