As a UK business, you likely have assets on your balance sheet that could be used to free up working capital. We hear it time and time again when companies are not only looking to scale but also survive in volatile markets and economic uncertainty –
Cash is king
Freeing up working capital provides you with the cash that can be invested in new equipment when traditional bank loans can be difficult to come by. Cash that can help acquire the all-important market share when you’re looking to scale your business when competitors remain static.
We actively explore all of the possibilities available to our clients.
Traditional lenders can often be extremely risk-averse when financing a business’s growth in volatile economic conditions. Now is the time to target specific initiatives that will reduce working capital requirements and put your business in a strong financial position to weather an economic storm successfully. As an independent broker with access to numerous bespoke lenders, our specialist advisors can explore all options available to reduce working capital and improve cash flow.
Working capital is the daily operating liquidity available to a business. In accounting terms, it’s the product of a company’s current assets (inventories, accounts receivable, cash) minus current liabilities (accounts payable, short-term loan payments). Having positive working capital ensures that a business has the funds to make short-term debt payments and meet pending operational expenses. We’re talking about essential obligations, like payroll.
The steps to explore when reducing working capital requirements are not rocket science. The challenge is to fix the underlying processes often overlooked during substantial sales growth periods but eat up excessive amounts of cash. At CMF, we carry out a full review of your financial position and make recommendations based on your specific business needs.
CMF Capital – our commitment to a brighter future
Working with our clients to secure favourable finance terms, we also explore all available Green initiatives, helping clients build and invest for a more sustainable future.
If you would like to explore the options available to you and your business, enabling you to free up cash flow and assist with your business growth. Contact one of our regional directors today on 01252 302183