There is a lot involved in running a business with challenges on every step that must be handled. A business with positive working capital tends to overcome the financial challenges occurring in the business and can invest flexibly to meet short-term obligations.
Understanding working capital
A business has both assets and liabilities. Working capital is the difference between the two, calculated by subtracting current liabilities from the current assets. It is listed in a business’s balance sheets. Current assets involve inventory, cash, and accounts receivable, while current liabilities are taxes, accounts payable, interest owed, and wages.
Positive working capital indicates that the business can pay its bills and invest for growth. To manage the working capital, you might need the help of a working capital advisory.
Characteristics and benefits
DBS is a working capital bank you will find in the marketplace. It stands apart from its competitors in many ways, some of which are mentioned in the following points:
It provides the customers with peer and industry benchmarking delivered through new and innovative applications suitable for the cause.
- Diagnostic tools
It also offers different tools to diagnose the challenges your company might be facing and how to overcome them. It performs a detailed, comprehensive, and customized analysis of the client’s data, after which a report is provided with concise and precise steps to take.
- Advice and insights
The bank provides the best practices of the industry along with leadership and networking to create extra savings and cash flow.
Do you need the services offered by DBS?
You might be wondering if there really is a need to get the help of a working capital bank like DBS; you can stop wondering now. The answer to your question is that you need the services to benefit your own business.
The bank helps you identify inefficient or weak areas in the working capital cycle, thus implying the solutions recommended by the advisory. The solutions help you get optimized cash flow and release trapped cash. The released cash can further be used to reduce the company’s financing cost and reinvest for better growth results.
The working capital advisory at DBS bank has created various tools, insights, and practices that can help companies of all sizes – small, medium, and large, regardless of the industry’s specific area the industry covers. So, if you have been facing a slump in the working cycle, there is no reason not to turn to DBS bank.