Intro – Working Capital Finance – Services

Cash Credit and Overdraft

Simply stated, working capital is the difference between current assets and current liabilities. Every entity with an intention to grow requires working capital to meet the entire range of short-term fund requirements such as cash credit and overdraft that arise within their day-to-day operations. It’s a measure of short-term liquidity and addresses the overall efficiency of the organisation. 

Analysis pertaining to Working capital sufficiency addresses:
  • Credit term to offer for sales orders
  • Credit term to negotiate for purchases
  • Assistance required from the financial institutions
  • Decision pertaining to organisation’s team expansion or any capital expenditures
  • Company’s growth rate and profitability
At Cashcow consulting we specialise in ‘Analysing’ the working capital sufficiency i.e cash credit and overdraft by studying the current and previous year’s balance sheet of the institution. Understanding the capacity utilisation in the current period coupled with budgeting allows us to frame the long term forecasts on profitability and growth. This in turn forms the basis to address the above mentioned concerns of the company.

Current health check-up: Cashcow Consulting approach is to analyse the current financial health such as cash credit and overdraft of the company though various ratio’s run over a proprietary score card. The report of the same, points to the current weakness and strengths. This frames the short term strategy focused to address the same. 

The above chart is a representation of ideal source and utilization of fund.