Explanation
Effective strategies include:
- Inventory Management: Avoid overstocking and obsolescence.
- Receivables Management: Speed up collections.
- Payables Management: Negotiate longer supplier payment terms.
Benefits of strong working capital management:
- Improved liquidity
- Higher operational efficiency
- Reduced reliance on external funding
Practical Example of Working Capital Management
A wholesaler who streamlines stock ordering and secures 60-day payment terms with suppliers can unlock £40,000 to reinvest in marketing or expansion activities.
How Bizcap Can Help:
Bizcap offers quick-access funds to support better working capital management, enabling you to seize opportunities without cash flow bottlenecks.