Working capital: the oil to keep the business running

Figuring out where a company’s capital is tied up is the first step to figuring out how to finance a steady flow, writes Frank Dillon
Working capital: the oil to keep the business running

Invoice discounting can be a useful cashflow source of finance.

Managing working capital and cash flow is a critical concern for all businesses, but especially so for SMEs, and even a fundamentally sound and profitable business can soon run into difficulty through poor cash-flow management.

“If creditors falling due cannot be paid, confidence in a business of modest scale can evaporate quickly,” notes Colm Sheehan, director of corporate finance at Crowe. “Owners can mitigate this risk by maintaining a strong credit policy, having a broad customer base so they are not overly exposed, and leaning into the various funding solutions that are available in the market.” 

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