KredX Blog KredX Blog
  • HOME
  • PRODUCTS
    logo

    FOR BUSINESS logo

    logo

    FOR INVESTORS logo

    Invoice Discounting

    Unlock money tied up in unpaid invoices

    KNOW MORE

    KredX Pay Later

    A closed loop financing for your dealers/distributors/Retailers

    KNOW MORE

    KredX Cash Management Solutions (CMS)

    Get real-time analytics. Manage disputes. Minimise risks. Get risk-free returns

    KNOW MORE

    KredX Global Trade

    Get Quick Finance To Fund Your Import-Export Requirements

    KNOW MORE

    Invoice Discounting

    Diversify your portfolio with alternative short-term investments

    KNOW MORE
  • PARTNER WITH US

    Business Partner Program

    Accelerate your client’s business growth and get attractive payouts on time

    KNOW MORE

    Financial Advisor Program

    Grow your credibility and clients’ investment portfolio

    KNOW MORE
  • KNOWLEDGE CENTER

    FAQs

    Blog

    Knowledge Base

    Webinars

    Reports

    WhitePapers

    Podcasts

  • COMPANY
  • LOGIN / SIGNUP
  1. Home
  2. Working Capital
  3. Top Ways To Increase Your Working Capital And Liquidity  
 Top Ways To Increase Your Working Capital And Liquidity  
Working Capital

Top Ways To Increase Your Working Capital And Liquidity  

by KredX Editorial Team March 21, 2022 0 Comment

Every business must opt for a proper strategy and cash flow management to ensure smooth functioning. Here, they must focus on increasing working capital. Working capital refers to the money available to a business to cover the cost of an entire operating cycle after paying its current liabilities. Businesspersons can increase working capital and liquidity by following some tips. This piece thoroughly talks about ways to increase working capital. Stay tuned! 

Ways To Increase Working Capital And Liquidity  

Following are discussed certain ways or tips to improve working capital and liquidity:

  • Opt For Shorter Operating Cycle

Operating cycle starts when a business invests its money on several operations, which end when it receives payment. The time period gap between these activities is essential for every business. If business persons take days to send an invoice, it affects their cash flow negatively; hence they must request payment terms depending on the industry. A longer operating cycle can lead to lost income and poor liquidity; on the other hand, a shorter operating cycle can improve cash flow.  

  • Avoid Unnecessary Expenses And Overstocking

The demands of a business are multifaceted. No wonder expenses of a business are huge. Here, business persons along with the accounting department must spend judiciously per their business requirements and budget. They can reduce unnecessary expenses by limiting their investment in inventories. Understanding business needs, and its financial stature, i.e., available working capital, can assuredly help business persons increase liquidity and invest in areas that require money the most.       

  • Perform Credit Checks On Customers

Bad debt can impact a business and its working capital massively. Hence, to avoid such incidents in future, business persons must check the credit score of their clients and sell products or services per their repayment capacities. It is necessary in case of bigger deals. 

  • Focus On Timely Collection Of Invoices

A successful business runs with the help of an efficient accounting department. This department must monitor every due and focus on collecting due invoices timely. Further, they must identify accounts or persons making a late payment and continue business activities once they finish previous dues. Here, the accounting department can set reminders that will help them accelerate the collection process.     

In the case of business, entrepreneurs in need of cash instantly; can release their locked cash or working capital by pledging unpaid invoices. Reputed financial services providers like KredX offer invoice discounting, allowing businesspersons to raise working capital against unpaid invoices. The invoice discounting process is quick where businesses have to sign up, complete document verification and upload invoices. Next, trusted investors will purchase the same. Once the invoice purchase process is done, businesses will receive funds in their accounts within 24-72 hours.    

  • Bottom Line

By bringing some changes in business approach or ways of managing working capital, entrepreneurs can take out extra funds from their operations and reinvest them. Changes in business approach mean responsible spending, careful collection, and taking an informed decision. And once a business succeeds in imbibing these attitudes to their activities/operations, they can undoubtedly make the most out of their available assets and access the liquidity they need.

Share This:

Author :-

KredX Editorial Team

Tags: get working capital working capital
Previous post
Next post

KredX Editorial Team (Website)

administrator

Enquire now

  • Invalid value

  • Invalid value

  • Invalid value

The Best Of Alternative Investments, Now On Your Phone

Download App:

KredX Blog KredX Blog

Wing ‘A’, Ground Floor, Office-1 Block-‘A’, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Bangalore South Taluk, Outer Ring Road, Bangalore – 560103

+1 212-602-9641

info@example.com

Get More Location

Follow us:

Download app:

Company

Home
About Us
Careers
Contact Us
Our Offices

Resources

Blog
Reports
Whitepapers
Knowledge Base
Podcasts
Webinars

Support

FAQs
Talk To Our Advisor
Chat With Us
Sign Up
Login

Legal

Nodal Officer Name: Amrutha A / Ph: 08061799200, IVR-9 / Email: Amrutha@Kredx.Com
Terms And Conditions
Privacy Policy

Investor Products

Invoice Discounting
Bonds
Digital Gold/Silver
KredX Assured

Business Products

Invoice Discounting
Buy Now Pay Later
KredX Cash Management Solutions
KredX Global Trade

Quick Links

Business Partner Program
Financial Advisor Program
Business Suite
kredx certificateskredx certificateskredx certificateskredx certificates
©2023 Minions Ventures Pvt Ltd