As the name implies, working capital finance has been developed to help a business boost its working capital through business finance. Often it will be sourced for areas of business growth where a company is looking to diversify into a new market or focusing on winning much larger contracts.
Working capital finance can be utilised by any type of business for any specific need, it will free up cash for a business which they can then re-generate over a short to medium term basis.
There are many options in relation to working capital finance, some solutions have been designed solely for working capital but are generic for use across any sector where others have been solely developed for key industries such as manufacturing capital finance or agricultural capital finance.
The phrase liquid cash is something that can also be referred to when talking about working capital. Basically, this refers to cash within a business which is not committed to anything (e.g. it is free to use) or it can also relate to the value of an asset that can easily be converted in to cash. This liquid cash is seen as working capital and can then be used as the collateral when applying for business finance.
Here at NGI we have recently helped a technology business with some working capital finance to allow them to commence the building of a new piece of software and supported an accountancy firm who are on a rapid expansion programme through the purchase of other smaller accountancy practices.
If you have any questions in relation to working capital finance or any other area of business finance, then we would be happy to help. Please call us on 01993 706403 or e-mail email@example.com.