Working capital allows your business to grow without incurring debt. Demonstrating positive working capital makes getting loans or other forms of credit easy. Working capital refers to the difference between a company’s current assets and current liabilities (per the balance sheet). The amount the business requires to make regular payments, purchase material to produce goods, […]
Potential investors, lenders, taxing authorities, and suppliers use the balance sheet and other important documents to gauge a company’s financial condition. Valuation experts assess it as a part of the business valuation process.