Title: What is Working Capital and What Does it Mean for Your Business? | PayPal
Headings: What is working capital and what does it mean for your business?
What is working capital and what does it mean for your business?
Business Resource Center Grow your business Getting funding
What is working capital?
What does working capital mean for your business?
Working capital management 101.
1. Managing cash.
Forecast cash flow.
2. Receivables are cash on its way.
Establish a receivables policy.
Collecting payments from customers.
Managing customer data.
3. Inventory and supplies: An overlooked asset.
Controlling inventory and supplies.
Counting inventory.
The importance of working capital.
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Content: Although processes will vary from business to business, here are best practices to consider: Monitor supplier performance. To get the best materials and service, closely track supplier performance and keep detailed records. If a supplier is not delivering as expected, use your records to negotiate better prices or additional rebates and discounts. Use automated and manual calculation processes. An inventory system can automatically alert you when inventory is low; however, a person should make final decisions about ordering inventory. Automated ordering may put your business in an overstock situation. Prepare demand forecasts. Accurate forecasts can help manage inventory levels.