Friday, July 20, 2007

Inventories Stressing Working Capital

According to CFO Magazine's annual working capital survey, the nation's biggest firms allowed their days inventory outstanding to rise last year driving a slight increase in overall working capital days.

Now in English. Business is not turning its inventories as fast as last year and thus more money is tied up in working capital.

And money tied up in working capital is money not available to invest in the business, fund an acquisition or pay dividends to the owners.

Rick Arcaro, a Comerica banker, was recently interviewed in Smart Business Magazine about creative financing secured by accounts receivable and inventory. This financing solution may be available to help small businesses with money tied up in working capital.

Has the growth of your small business resulted in too much money tied up in working capital? Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!

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