When is working capital funding appropriate?
Date
04 September 2016
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The type of working capital funding you choose will largely depend on the type of business you’re in. Regardless, it is an excellent way of maximising cash flow, the lifeblood of any business.
Using working capital funding gives you a timing advantage – money that you would typically have to wait 30 days for is available immediately.
However, it is no magic bullet – it simply brings forward the receipt of money. You need to be careful when using it as, once you’re used to receiving invoice payment early, it can be a difficult cycle to get out of. Stopping can create a hole in your cash flow.
Talk to your business partner at Finance New Zealand about which type of working capital funding is best for you.
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