0
Working capital is said to be the life blood of a business. Working capital, signifies funds required for day-to-day operations of the firm. In financial literature, there exists two concepts of working capital, namely gross concept and net concept. According to gross concept, working' capital refers to current assets viz, cash, marketable securities, inventories of raw material, work-in-process, finished goods and receivables. According to net concept, working capital refers to the difference between current assets and current liabilities. Ordinarily, working capital can be classified into fixed or permanent and variable or fluctuating parts. The minimum level of investment in current assets regularly employed in business is, called fixed or permanent working capital and the extra working capital needed to support the changing business activities is called variable, or fluctuating working capital. What is the nature and the scope of working capital decisions? What are the important dimensions of working capital management? What are the basic decision criteria, principles and approaches applicable in the field of working capital management? In this chapter, we shall take up each of these questions and thus take an overview of working capital management.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Meaning of working capital demand loan?
A loan whose purpose is to finance everyday operations of a company or corporates.
What is the meaning of paucity of working capital?
Paucity of working capital means shortage of working capital. A business house may face shortage of working capital which can be compensated by personal source, private or bank loan.
Form where can the exporter obtain working capital loan upto how many days he can get discounted loan?
An exporter can obtain the working loan from the company that he seeks to help export their goods.
Where can one find information on small business working capital loans?
Small business capital working loan information can be found on the funding sources website. If you need help or specific information not publicly listed, you can contact a telephone specialist.
Define outstanding loan?
Difference between loan disbursed and loan outstanding; the unpaid remainder that you still owe.
Meaning of working capital demand loan?
A loan whose purpose is to finance everyday operations of a company or corporates.
What is the definition for working capital loan?
The definition of working capital loan is a loan for which the purpose is to finance everyday operations of a company. You can learn more about working capital loans at the Investopedia website.
What is the meaning of paucity of working capital?
Paucity of working capital means shortage of working capital. A business house may face shortage of working capital which can be compensated by personal source, private or bank loan.
How a firm increase its working capital?
Firm can increase it's working capital by issuing more capital to public or by getting shore term loan from market.
How Long Do I Need To Be In Business Before I Can Get A Working Capital Loan?
The lender will require at the least 24 months of operating history under the same ownership to consider your business for a working capital loan.
Form where can the exporter obtain working capital loan upto how many days he can get discounted loan?
An exporter can obtain the working loan from the company that he seeks to help export their goods.
What is the purpose of a working capital loan?
A working capital loan is often used by companies to finance debt for a short period. It is used to cover the costs of everyday operations until the company receives income.
How should the working capital requirement of a firm be financed?
There are many ways of funding the working capital of a business: * Overdraft * Loan * Equity * Invoice discounting or factoring
Is the working capital loan customizable?
Yes. The level of customization depends for your overall application profile and whether it meets the specific standards of various working capital loans.
Can you renegotiate a Working Capital loan?
The lender will consider such requests of working capital loans with bad credit; however only where there is a clear business case that it makes sense for all parties.
How Can I Use The Working Capital Loan?
Use the working capital loan in any way you deem fit. Customers typically use the cash to support or upgrade their business in some way. Maybe you need maintenance or inventory. Perhaps you would like to increase your present location or simply add a new location.
Where can one find information on small business working capital loans?
Small business capital working loan information can be found on the funding sources website. If you need help or specific information not publicly listed, you can contact a telephone specialist.
