Importance of Working Capital

Working capital is the money a business uses for daily operations.

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It includes cash, inventory, and receivables.

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Having enough working capital helps a business pay its bills on time.

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Good working capital management can improve a business's credit score.

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It ensures that a business can continue to operate smoothly.

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Working capital helps businesses handle unexpected expenses.

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It allows businesses to take advantage of growth opportunities.

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Poor working capital management can lead to financial problems.

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Monitoring working capital regularly is essential for success.

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Businesses can improve working capital by managing inventory and receivables efficiently.

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