You’ve done your research and you know exactly what to do to take your business to the next level.
Your team is behind you and you’re extremely excited about the possibilities.
The last step in the process is talking to your accountant or Chief Financial Officer about finding the cash to make your expansion dreams a reality. Unfortunately, when you go to talk with this person, their response is akin to a wet blanket.
“Sorry,” they say, “you just don’t have the working capital to make it happen.”
You’re STUNNED. Your business is doing well and there’s a high demand for your product or services. What is working capital and how can you get some more of it…FAST!
The Commercial Finance Group is an expert in creating customized lending solutions for small to mid-sized businesses. For years our California office has been helping businesses in and around Burbank liquidize their assets so that they can seize opportunities for growth and success wherever they arise.
What Is Working Capital?
According to the Business Dictionary, working capital is:
- The cash available for day to day operations of a business. Also called “current capital.”
- Net liquid assets that are calculated at any given point in time by deducting current liabilities from current assets.
The amount of working capital a business has is a direct reflection of how well it can meet its short-term financial obligations, like rent/mortgage payments, weekly payroll, utility bills, and vendor bills.
How Can Working Capital Be Improved?
If a business wants to increase its working capital, there are several options:
- Earn more profits (by raising prices or decreasing overhead costs, for example)
- Issue common stock or preferred stock for cash
- Replace short-term debt with long-term debt
- Sell long-term assets for cash
- Settle short term debts for a discount on the stated amounts
- Collect more of the accounts receivables than anticipated
- Obtain alternative funding
It’s this last option that The Commercial Finance Group in Burbank can help with. If you’ve found yourself without access to the working capital you need to make your dreams come true, contact us. We can customize a lending solution that puts more working capital back into your pocket.
