1) In a nutshell
A business’s working capital is equivalent to the amount of cash it can deploy very rapidly, otherwise known as its operating liquidity. Working capital is required for any business to pay its trade creditors for its day-to-day trading operations.
Growing businesses often suffer from a lack of working capital due to long payment terms. Invoice finance, such as MarketInvoice, can be a solution to this problem.
2) Also known as…
Operating liquidity; Cash flow; Current ratio; Working capital finance
3) How it works
Where businesses are suffering from a negative working capital position, they can improve it using a line of credit from a finance provider. Common working capital finance solutions include overdrafts and invoice finance.
There was a time when a bank would help businesses through short term cash flow difficulties with a loan or overdraft extension, but since the credit crunch of 2008 it has become much tougher to access bank finance. For businesses looking for working capital support, MarketInvoice can provide a flexible line of credit through its online invoice finance product.
How MarketInvoice can help
Our invoice discounting solutions allow you to free up working capital for your business by getting an advance against your outstanding customer invoices. You can do this either on a selective or whole ledger basis. If you choose to add on credit control, you can get the benefits of credit collection support on a fully confidential basis.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With MarketInvoice, you get:
6) Next steps