A business needs to know how much money it will need as working capital to cover the gaps between its income and outgoings. This gap is usually the relationship between debtors and creditors. Forecasting a business’s cash needs is essential and is best done using a cashflow forecast. New businesses often need initial working capital, this is money required to help the business get going.

For established businesses it is a measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:

Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).

Also known as "net working capital", or the "working capital ratio".

How we can help

• Preparation of business plans.
• Advice on the best form of funding to suit your circumstances and requirements.
• Advice on the most cost effective method of funding, not just in terms of interest charges and repayments, but taking into account the cost of taxation as well.
• Assistance with making an appropriate presentation to your chosen bankers
• Helping you to access sources of non-bank finance which we can introduce you to.
• We can identify other services which may be relevant to your situation.

Our commitment to you
 

• To provide a service that is tailor made to meet your requirements.
• We will keep you informed as to the cost to you in our charges,
• We will also inform you as to whether or not we have a remuneration arrangement for introductory payments to us by any of the third parties we introduce you to.
• We will keep your best interests as our first concern