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: A receivable is a customer’s unpaid bill. The receivable becomes cash once a customer settles it. Receivables are generally due within 30 – 90 days, depending on the invoicing terms. Inventory: While inventory can’t be used to pay immediate expenses, it can be sold at a discounted price to raise cash quickly. What does working capital mean for your business? Understanding working capital management is key when it comes to staying on top of cash flow and deciding when it’s the right time to make investments that will help your business grow. It can also help you prepare for the natural ups and downs of your business. If your business is considering an opportunity and you don't have the working on capital on hand, there are short-term financing solutions that can help your business bridge cash flow gaps. Working capital management 101.