Capital Feed

We want to start another series on Working Capital in small businesses. This series over the next few months will focus on better understanding small business working capital, how it works in your business, how it can propel or cripple your business and lastly, how your small company can finance your working capital needs.

Let’s begin by defining what working capital is:

According to David A. Duryee of Management Advisory Services* – working capital is simply the difference between current assets and current liabilities where current liabilities (like accounts payable, short-term notes and accrued expenses) are used to finance current assets (like accounts payables and inventory).

Now, that is the proper definition.

However, in your business it really breaks down as follows:

A new series on working capital for small businesses. To keep reading go to Business Money Today.

Leverage your current development to exponentially grow your business – that is true business.

Go to Business Money Today and get started today.

Business Credit Cards

A small business credit card or corporate credit card can help you keep your company’s expenses on track and obtain the buying power you need to operate your business. Some business credit cards also reward you for all your business purchases in the form of cash back or airline miles.

Compare the business credit card offers below and apply for the card that’s right for you

In need of quick but flexible working capital?  This might be your best and only option in this economy. Check out these business cards at Business Money Today.

Capital (cash, money, dough, moolah) is an asset and like all business assets, it should be used in the most efficient manner – a manner in which it brings solid value to the business (return).

But, capital is a hard asset to acquire these days and thus, should your company be in a position to receive outside financing like a business loan – then that capital should be properly put to use as your business might not have this opportunity again in the near future.

In private equity deals (venture capital, angel capital), most investors will traunch their funds. This means that they will dole out their investment in chunks based on the investee (the growing company) meeting certain milestones in either customer acquisition or revenue generation.

This is done to essentially set up an option for the investor – where the VC or Angel can re-evaluate the deal at certain stages to determine if they want to continue to pour in money or to simply cut their losses.

Now, an option is only valuable when it is in play – take it out of play (like fund the entire amount up front) and the option becomes sunk (worthless).

While this seems to protect the investor, it can also work for a business seeking a business loan.

A business can fundamentally create their own traunch of funds – creating an option for themselves – an option that provides value, such as:

To read more go to Business Money Today.

BEIJING— Jin Jitao, an editor at a textbook publishing house, may be the prototype ofChina’s new urban consumer. Although he had never even heard of credit cards until 2004, he now has 79.

He has a card embossed with his nickname, one with a photo of his family, a pink Barbie card and two withGarfieldthe cat. He has a card especially for dads and several with Chinese cartoon characters.

“I like beautiful cards,” he said.

In a country that still largely runs on cash and where the idea of saving money seems embedded in the cultural DNA, the use of credit cards and debit cards is skyrocketing.

Chinaissued 230 million new credit cards in 2010, an increase of 24 percent over the previous year, according to the China Banking Association, and the use of plastic for retail sales is up more than 40 percent this year.

It is a growing market thatU.S.credit card companies such as MasterCard, Visa, American Express and Discover are watching enviously as Americans are tightening their belts.

“In the next 20 years, more and more people are going to switch from cash to credit cards,” said Arthur Kroeber, managing director of GaveKal-Dragonomics, a Beijing-based economics research firm. “The growth is going to be spectacular.”

Want to keep reading this article go to The Washington Post.

A working capital line a credit is essentially a revolving line of credit from which your business can draw from and pay back as needed.

Example:  Your small business just closed a larger then average customer.  However, your business needs to pick up $10,000 in materials to complete this new, very profitable job.

However, your cash situation is a little low given the recent slow recovery we all are facing.

You had a business line of credit years ago, but the bank that held that line was one of the many that had to take the government’s TARP funds and thus, to improve its own balance sheet, reduced your line of credit to your last outstanding balance of $2,000.

After which, you did not renew the line (and pay the hefty fee for it) and thus, your line of credit expired.

So, what are you going to do now?

Read more at Articlesbase.