Working Capital represents the funds a company has to cover its operational expenses, such as inventory, payroll and other short-term obligations. There are several treasury components of working capital a company will think about. These areas include cash management, financial processes, liquidity, financial risk management, and access to capital. It is proven that when clients prioritize working capital management it leads to better overall company performance. Companies are generally satisfied with their approach to working capital management, but many are missing opportunities to improve. A positive working capital indicates that a company has enough short-term asset liquidity to cover its short-term debts and invest in its operations. Negative working capital might suggest that a company could have trouble meeting its financial obligations and may need to secure additional financing or take steps to improve cash flow. Effective working capital management involves managing inventories, accounts receivable and payable, and cash to ensure a company can continue its operations and meet its short-term debts and upcoming operational expenses. Good management ensures that a company always has sufficient cash flow to handle its short-term commitments and invest in growth opportunities. Purchasing cards can have an impact on a company’s working capital in several ways: 1. Improved Cash Flow Management 2. Reduced Processing Costs 3. Enhanced Spend Visibility and Control 4. Simplified Reconciliation Processes 5. Earn Rebates and Rewards 6. Inventory Management 7. Expense Deferment

  • Attendees will learn that there are multiple ways to identify working capital opportunities within each conversation you have with a client.
  • Conversation starters are top of mind when looking at proposing purchasing cards as a solution.
  • How to improve working capital strategies for all companies, regardless of size.