Top advantages of Net working capital and why it is needed
Working capital is extremely crucial for the company's survival. It is more like a strategy that is employed by business owners and managers to ensure the smooth working of the company and also retain its employees during crucial times. More often than not, it is also considered as a metric to define the growth and success of a company. Here are the top 5 advantages of maintaining adequate working capital: Solvency Not every company or a business is always prepared for crucial moments or unexpected crisis. However, if the company masters in maintaining adequate working capital, then it will help the company during solvency and provide cash flow interminably.. Loans Every bank requires a business history before they can provide loans to companies, especially the ones struggling to make it…