Learning about Finance

What is Working Capital? Working capital refers to: Inventory (Stock that we have in our warehouse) Creditors (Companies we owe money to) and Debtors (Companies who owe us money) Cash (Money in the bank) Inventory, creditors and debtors have a direct impact on the amount of cash in our business. WHY IS THAT? The timing…

Managing your cash flow can make or break your business because cash is king. Why is that? The basic flow of Cash in your business is: Your customers pay you, then using that cash you pay your suppliers. If your customers don’t pay you, you cannot pay your suppliers. The first step of good Cash…