The Importance of Working Capital for Your Business

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Investopedia.com: Working Capital = Current Assets – Current Liabilities

There’s no doubt about it: there has never been a better time to be in business. Many people are turning their dreams of owning a small business to work with the opportunities today’s economy has to offer. A few decades ago, starting a small business meant saving for years, acquiring a large amount of capital by other means. Then, as now, running out of cash could mean losing the business. Today, however, one can greatly reduce the risk of business failure using working capital finance programs. When used appropriately, these can help stabilize cashflow, and keep your business performing well during good times and bad.

Not only does working capital financing protect a company from the disruption caused by adverse or unexpected events, it can also help to facilitate an expansion, a new purchase, or a change in business strategy. In short, an injection of extra working capital can provide a business with added financial strength and flexibility.

Newer or smaller firms in particular, often find themselves short of the cash needed to purchase inventory or stock up on raw materials. Ironically, a company that finds itself low on cash often cannot create and sell enough product to generate the profits needed to pull itself out of this situation. This is of course destabilizing for the company and at worst can lead to an ever-deepening cash crunch. With a capital loan working for you, however, you can ensure that your business gets a strong start and can service its liabilities while meeting current cashflow needs.

Although most businesses still require traditional collateral for a working capital loan, particularly if obtained from a bank, a new breed of innovative lending companies has emerged that can provide smaller businesses with significant amounts of capital on an unsecured basis. The financing options for today’s small company have grown tremendously in recent years, and the smart entrepreneur can turn these to the advantage of his or her business.

Commander Capital Funding Group has access to many of these lenders. Contact us today on (888) 748-7731 or info@commanderfunding.com to find out how we can help you strengthen your business.

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