Posted on 15 June 2020
- Working capital is the difference between the current assets and the current liabilities of the firm. Without working capital, a business can’t function.
- Failure to receive payment from customers for goods and services is often the biggest reason why a company’s working capital dries up.
- Accounts Receivable financing is a way to decrease your Working Capital Requirements by having a financier to buy your invoices at a discount. The financier will get paid later when your customer’s credit terms are expiring and the invoice is paid.
- Through accounts receivable financing, companies can trade cash flows later for cash flows now. It allows them to manage business and growth requirements.