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| | Working Capital, Improving Cash Flow, Manage Inventory & Receivables and Ratios |
 | | Therefore, if cash is tight, consider other ways of financing capital investment - loans, equity, leasing etc. Similarly, if you pay dividends or increase drawings, these are cash outflows and, like water flowing down a plug hole, they remove liquidity from the business. |
 | | If you have insufficient working capital and try to increase sales, you can easily over-stretch the financial resources of the business. |
 | | When planning the development of a business, it is critical that the impact of working capital be fully assessed when making cashflow forecasts. |
| www.planware.org /workcap.htm (2598 words) |
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