Cost of Trade Credit
Does Trade Credit also Cost?The statement “trade-credit has no explicit cost” is a misleading statement. It is only partially correct. The trade credit is… Read Article
Working Capital
Advantages of Trade Credit
Trade credit has various advantages, making it a favorite source of working capital for all levels for buyers and a promotional tool for suppliers.… Read Article
Current Assets and Their Key Features
Current assets are those assets that are transformed into cash within one year. These assets include cash, marketable securities, account receivables/debtors, all types of… Read Article
Types of Working Capital – Gross and Net, Temporary and Permanent
Working capital is the capital/funds required for day to day operations of the business. It is usually invested in all types of inventories, such… Read Article
Internal Sources of Finance
What are Internal Finance / Internal Sources of Finance?The term “internal finance” (or internal sources of finance) itself suggests the very nature of finance/capital.… Read Article
Net Working Capital
What is Net Working Capital?Net Working Capital (NWC) is a fundamental financial metric that plays a crucial role in evaluating a company’s short-term financial… Read Article
Techniques for Finding Optimal Level of Working Capital
Working capital management techniques such as the intersection of carrying cost and shortage cost, working capital financing policy, cash budgeting, EOQ, and JIT are… Read Article