As a business owner you need to be conscious of whether your overall working capital position is steady, declining, or even increasing. There are some very simple dimensions to assess overall situation. One of the most basic measures is simply to keep an eye on sales growth alongside those current assets. Quick example - if your sales are growing by 20% per annum but you determine your receivables and inventory have grown to 35% of their former values, then, guess what, you have a working capital solution need. No surprise there, as most business managers naturally know the strains that working capital needs place on a firm.

Unleashing the answer will be the key to a cash flow funding solution. What do we mean by that? Easy, that what you have to do is two simple things to unleash the capital funding that is invested in your company in the form or receivables and inventory. First, you have to perk up your turnover. That's an internal obejective, and we won’t be able to help our clients on that one, you have to take ownership. The benefits will be in collecting receivables quicker, be more attentive in extending credit terms, and control your inventory.

Secondly, and this are is where our clients do reach out for outside help, is the want  ' monetize ' working capital funding accounts. How is that possible? Glad you ask! The most familiar solution is bank financing verses a service line of credit for A/R and inventory that would tackle working capital financing necessities.

But most business in America today, surely in the small and medium sized division can't access all the bank financing they require, if at all.

In business you accomplish positioning working capital financing via earnings which fund growth, borrowing on a long term debt basis (not our preferred!), or selling assets.. Again the latter is not our common area.

What is our preferred then?! It is, as we said, monetizing current assets. You do this via a working capital facility that margins A/R and inventory properly.

These facilities, when combined with the inventory component, make sense for firms with monthly A/R and supply balances in excess of 250k. When that total is less than 250k a receivable financing strategy is required. Our preferred is confidential invoice financing or discounting, which we feel is the best influential cash flow solution. It provides you to bill and collect your own receivables and turns your company into a cash flow machine readily able to tackle all avenues of sales increase.

Speak to a trusted, credible and experienced U.S. business financing consultant- he or she will help you direct the working capital funding challenges and focus on a specific resolution that makes sense for your company. That's a concrete New Year decision for your company that is achievable.

Ruth is the Founder of Prime Bay Funding Group. She is a Motivational Speaker, Author, Business Building Relationship, and a Financial Strategist who has helped many business owners for three years. Prime Bay Funding Group has partnered with hundreds of private investors with billon dollars looking to provide capitals.Get A Free Assessment Funding Today!