When most businesses seek to raise cash for their business their first instinct is to look to their bank or other lenders. Alternatively, they may look to invest some of their personal funds into their business or to sell some assets to create liquidity. However, in many instances there is a much simpler, easier and cheaper way to raise cash, namely effective working capital management. Very often the cash is already on your balance sheet. It is tied up in excessive stock holding. It is owed to you by your customers who are exceeding your standard credit terms. It is with your suppliers who demand payment from you before your own customers have paid you. Small changes to your internal practices can give improvements in all of these areas and, in the process, create much needed liquidity for your business. Please contact Drummond Laurie if you would like advice on how to improve your working capital management and release some of your own cash back into your business.
