Working Capital Management
What is Working Capital?
Working capital refers to the difference between a company's current assets and current liabilities. It is a crucial financial metric that indicates a business's operational efficiency and short-term financial health. By maintaining an adequate level of working capital, a company ensures smooth operations, timely payments to suppliers, and the ability to seize unexpected opportunities. Insufficient working capital can lead to liquidity problems, hinder growth prospects, and even result in the inability to meet day-to-day financial obligations. Conversely, excessive working capital may indicate it isn’t being invested most effectively to drive your business growth and performance.
Working Capital Management
What payment terms are you offering to your customers?
What is your debt collection process?
How do you escalate overdue debts?
How much stock are you holding?
Is this stock sellable quickly or is it slow moving?
Is the price saving enough to merit increased stock holding?
What payments terms have you agreed with suppliers?
Are these longer than what you offer your customers?
Can you negotiate a better arrangement?
Scope of Services
Cashflow Management
Having a robust management system that accurately forecasts your cashflow is a vital tool to provide scale and growth within your business. I will help assist you in building forecasts which provide visibility and ownership to deliver a sustainable future.
Revenue Finance
Invoice finance/discounting can help facilitate growth by leveraging your sales ledger to get an immediate cash injection that scales in line with your business. I provide services which will source methods of finance that formulate the information required in order to support you in making applications to financial institutions.
Trade Finance
Alleviate significant outflows for stock/sales with manufacturing lead times when distributing products. By utilising facilities where institutions can initially pay these bills on your behalf can free up cash in your business.
Structured loans
Need something more structured? I can introduce you to facilities that can fuel business growth which would repay in line with the improved performance it generates.
Government Grants
Certain projects or spend can be eligible for Government Grants. These facilities can be cumbersome and complicated to apply for and understand. I can inform and provide guidance to obtain funding.
Trade Debtor and Creditor Management
I can provide guidance on how to negotiate extended credit terms with key suppliers. When it comes to debt collection, I will provide the means to collect debts quicker by introducing you to respected collection partners who act on your behalf to improve cashflow.
Contact us
Hi@DanYourFinanceArchitect.co.uk
07584302159