Negative Working Capital

Negative Working Capital

Negative working capital (NeWC) is defined as the excess of current liabilities over current assets. While calculating the net working capital, if the figure… Read Article
Permanent or Fixed Working Capital Graph

Permanent or Fixed Working Capital

Fixed working capital is the minimum investment required in working capital irrespective of any fluctuation in business activity. Also known as Permanent working capital,… Read Article
Disadvantages of Trade Credit

Disadvantages of Trade Credit

The advantages and disadvantages of trade credit are important points of consideration before forming any decision relating to trade credit. The key advantage of… Read Article
Cost of Trade Credit

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… Read Article
Advantages of Trade Credit

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
Trade Credit

Trade Credit

What is Trade Credit? Trade credit is an important source of working capital extended or generated by the business itself. It can be defined as… Read Article
Sources of Working Capital

Sources of Working Capital

Sources of working capital can be spontaneous, short term and long-term. Spontaneous working capital includes mainly trade credit such as the sundry creditor, bills… Read Article