PRIVATE BUSINESS CAPITAL LENDING AND INVESTMENT GROUP

MY BUSINESS BACKER

IMG_9518 2.PNG

GENERAL INFORMATION

CHECK BUSINESS TYPE

What Does Working Capital Tell You About Your Business?

Working Capital is commonly used to evaluate the long or short-term health of a business. Here is the calculation:

Working Capital = Current Assets – Current Liabilities

Current assets consist of cash, inventory, investments, accounts receivable and other liquid assets you can convert to cash quickly. Current liabilities include debts and obligations due in under a year, and they include accounts payable, short-term debts and long-term debt pay downs due within a year.

Ideally, current assets are greater than current liabilities, resulting in a positive working capital calculation. This signifies that the company has the resources to meet its short-term responsibilities.

How Can Working Capital Work For Your Business?

When you have sufficient working capital, you can use it to grow the business rather than merely staying ahead of your loans and other obligations. Here are some of the most common uses of working capital loans and reserves:

  • Purchase inventory before the busy season in your industry

  • Hire and train additional staff in time to train them before business picks up

  • Taxes sometimes come due at an inconvenient time. Short-term working capital loans help you pay your taxes without depleting your working capital.

Thanks for submitting!

We will be in contact with you shortly.

contact us at

info@mybusinessbacker.com

REAL ESTATE   
TRADING   
PRIVATE BUSINESS

Disclaimer

BY SUBMITTING YOU THE CLIENT agree that all the information given to MYBUSINESSBACKER.COM Services for the preparation of documents only, and that all information is true and correct and I authorize MYBUSINESSBACKER.COM to be the Incorporator if necessary. I also understand that MYBUSINESSBACKER.COM nor a law office or attorneys.

Therefore, no legal advice being received nor offered only the professional service herein described above for which a negotiated fee was agreed upon. Should this agreement be terminated by law  MYBUSINESSBACKER.COM be held harmless and without any liability.