How to Boost Your Net Working Capital this Spring | Behalf
Boost Your Business Net Working Capital
Spring is in the air! It’s time to make sure you have the purchase capacity to take advantage of the discounts and special offers that will ensure you and your customers get the best deals. First, you’ll need to understand how much net working capital you have moving into the new season. Net working capital is the funds available that you use to cover your daily operational expenses and short terms business needs. To find out exactly how much net working capital your business has left over from the winter, check out the article How to Calculate Net Working Capital in 3 Easy Steps. With an exact figure, you can plan properly and make smarter inventory purchases to ensure your sales bloom this Spring.
Your business can never have enough working capital. A sizeable cash reserve is crucial in the moments when your business experiences dips in revenue between seasons or gets hit with an unforeseen expense. Whether your business is coming out of a slow season or heading into one, chances are your net working capital could use a boost. There are multiple ways to free up more net working capital for your business and cushion your cash flow. The following article offers a couple of clever ways you can boost your net working capital.
Do a Little Financial Spring Cleaning
Coming out of the winter, you might have some supplier invoices sitting on top of your business accounts. Instead of dragging those invoices into Spring, give your business a fresh start. Pay off some of your debts and free up your net working capital with a Behalf credit line. Behalf will pay your supplier’s invoices today, then give you the choice of up to six months of payment flexibility. You can send an electronic payment with Behalf just as you would write a check. However, Behalf saves you time by eliminating the postage process.
Protect Your Net Working Capital with Behalf
With Spring come discounts and special offers. Taking advantage of deals with your suppliers is a critical requirement for you to offer competitive prices to your customers throughout sale season. Behalf can increase your buying power up to $50,000 so you won’t miss out on the latest product releases and bulk discounts. Behalf allows you to responsibly take advantage of time sensitive deals without draining your net working capital reserve. Then, you can pay over time as your sales roll in. Use Behalf in place of cash, checks or credit card and it augments your total open to buy. There is even a MasterCard feature that allows you to use your Behalf line to fund purchases you make in-store, online and over the phone.
Watch your Business Grow!
The purchasing power you get from Behalf works just like net working capital. It can cover recurring business expenses and other large purchases you don’t want weighing down your credit cards and business accounts. You can even use it to supplement parts of your business budget. For example, use Behalf to fund production of marketing materials to showcase your new spring collection and whet your customers’ appetites for the season’s hottest items. Behalf is the ideal way to cushion your net working capital and supplement your spring business budget. You can be certain that your competitors will be capitalizing on shoppers’ spring fever and you, too, will need to vy for their attention. Make sure you are prepared to compete by shoring up your marketing budget and securing the inventory you will need to meet your spike in demand. Behalf will help you put all your spring business strategies in motion and help you achieve a competitive edge before the summer hits.