Working Capital: Importance, Formula, Components, Benefits and Example

Working capital is significant to keep a business solvent. A positive working capital ratio indicates the short-term financial health of a business. A business with a positive working capital ratio can meet all its current liabilities and is believed to be financially sound. Supply chain financing lets you run your business without any interruptions and also allows you to take advantage of business opportunities that come your way. It is a highly flexible and reliable method of financing for businesses that require continued working capital by providing immediate liquidity for procurement needs—from raw materials and components to finished goods. For more information about  importance of working capital. can help overcome various business challenges, please give us a call.

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