http://www.fundingstore.com/working-capital-finance Working Capital Finance is vital for any business. Click here to hear Nick Montague from FundingStore giving expert insight in what you need to know about Working Capital Finance from a trusted industry leading expert.
Working capital is the revolving funding “pool” which a business uses to fund the day to day activity of the business. At any time, a business is likely to be owed money (debtors), owe money (creditors) and own stock, as well as having funds in the bank or a credit facility. The constant movement around these different pots is the working capital movement.
Traditionally, working capital funding has been in form of an overdraft facility provided by a lender (usually a high street bank) and the amount of facility which is being used at any one time may be nil or up to the maximum, dependent upon timing and level of activity. If a flexible facility such as an overdraft is permanently maxed out, then the lender is likely to approach the borrower and request that the facility is converted into a loan type instrument which would therefore be repaid over time. If you need any help in the meantime, please call us on 01565 756 141.
Working capital is the revolving funding “pool” which a business uses to fund the day to day activity of the business. At any time, a business is likely to be owed money (debtors), owe money (creditors) and own stock, as well as having funds in the bank or a credit facility. The constant movement around these different pots is the working capital movement.
Traditionally, working capital funding has been in form of an overdraft facility provided by a lender (usually a high street bank) and the amount of facility which is being used at any one time may be nil or up to the maximum, dependent upon timing and level of activity. If a flexible facility such as an overdraft is permanently maxed out, then the lender is likely to approach the borrower and request that the facility is converted into a loan type instrument which would therefore be repaid over time. If you need any help in the meantime, please call us on 01565 756 141.
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