Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth.

Typical issues in working capital issues can be: 

• Fast Growth

• Need to align operational management with financial management

• Need to align accounts payable and accounts receivable

The ability to effectively manage working capital can significantly improve the Balance Sheet, reduce borrowing costs and enhance gross margins by reducing credits and refunds.
 

Most businesses face working capital deficiencies during their existence. A lack of sufficient working capital can cause the failure of a business.

SEDC has programs that help companies to maintain a healthy amount of working capital thus helping you succeed.

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