Your business could be in the startup phase or even running smoothing and growing, but understanding your organization’s working capital is a basic piece of its general financial well-being. And keeping in mind that the measure of working capital and its ratio will unquestionably fluctuate from organization to organization (and significantly more so from industry to industry), it is a helpful instrument that determines the profits of your business and can be utilized to make informed and keen decisions for your business in all stages. Equities First Holdings has been offering working capital to various startup businesses for nearly 15 years with stock-based loans substituting the traditional bank loans. CLICK HERE to read Morningstar News for Equities First.
With low and fixed interests, the stock-based loans have greater loan- to-value proportion hence giving better option to conventional loans. Working capital (WC) is a critical metric for any business despite of their size being an indication of an organization’s working liquidity. Having adequate WC implies that the organization should have the capacity to pay entirely for its liabilities and short-term expenses. Big organizations focus on WC for an indistinguishable reason the same case with the small ones. Being a measure of liquidity, WC is a measure of company’s credit-value. Small businesses find it hard and tricky to borrow bank loans when the institutions evaluate their working capital. By not having adequate capital, they find it more expensive or even impossible, thus most of the startups fight challenges during their first phases of operations. Equities First Holdings has been an alternative source for such companies in addition to individuals who cannot secure conventional loans. Original Source .
For independent ventures and new businesses, not able to reach the financial markets for loan acquiring, WC come up with more desperate ramifications. New companies need to focus on their WC as it is the measure of cash needed to keep the business running until they start earning profits. Equities First provides an alternative loaning source for small business with small or no working capital and giving them a chance to grow.
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