Credit & Working Capital Management Services in Dubai, UAE
While considering the current financial situation, efficient credit and working capital management play a critical role for businesses of all sizes and economic condition. BOOKBLISS Credit and Working Capital Management Services in Dubai involve managing cash, inventories, and accounts payable and receivable for the effective administration of your firm’s short-term assets and its short-term liabilities. Through our capital management services, we ensure that your firm is able to run its operations while being able to repay its maturing short-term debts and expenses that might occur in the near future
What Is Credit and Working Capital Management?
Credit and Working Capital Management involves overseeing a company’s short-term assets and liabilities to ensure efficient operations and financial health. This includes managing cash, inventories, accounts receivable, and accounts payable to maintain optimal liquidity and profitability.
Key Benefits of Effective Management
- Improved Cash Flow: Ensures sufficient liquidity to meet day-to-day operational expenses and short-term obligations.
- Enhanced Profitability: Optimizes resource allocation, reducing unnecessary expenditures and improving margins.
- Risk Mitigation: Identifies and addresses potential financial risks, safeguarding the company’s assets.
- Operational Efficiency: Streamlines processes related to inventory management, receivables, and payables.
Bookbliss’s Approach to Credit and Working Capital Management
- Cash Management: Determining optimal cash balances to meet operational needs while minimizing holding costs.
- Inventory Management: Maintaining appropriate inventory levels to prevent stockouts and reduce carrying costs.
- Receivables Management: Implementing effective credit policies and collection procedures to expedite cash inflows.
- Payables Management: Negotiating favorable terms with suppliers to optimize cash outflows without compromising relationships.
- Short-Term Financing: Identifying suitable financing options to bridge temporary cash shortfalls.
F A Q
Frequently Asked Questions on Credit & Working Capital Management
What are the ways to Ensure Effective Management of the Working Capital?
Managing capital effectively should be among the CFO’s top priorities since it’s an accurate barometer for assessing the long-term financial health of a business and ensures that the corporate always maintains adequate income to satisfy its short-term commitments. We focus on Inventory Management, Debtors and creditors Management, Cash Management, and Prepaid expense management
How does one analyse working capital of a company?
Working capital is the measure of current assets divided by current liabilities. A ratio above 1 means current assets exceed liabilities, and usually, the upper the ratio, the higher. It upholds sufficient cash flow to meet its short-term operating costs and debt obligations within the company to ensure better financial health.
What is the use of working capital?
Working capital is the money to cover a company’s short-term expenses, which are due within one year. Capital is employed to get inventory, pay short-term debt, and day-to-day operating expenses.
Why is working capital management significant to a company?
Proper management of capital is important to a company’s fundamental financial health and operational success as a business. The capital ratio, which divides current assets by current liabilities, indicates whether a corporation has adequate income to hide short-term debts and expenses.Sometimes a corporation doesn’t have adequate cash available or asset liquidity to hide day-to-day operational expenses and, thus, will secure a loan for this purpose. Companies with high seasonality or cyclical sales may believe capital loans to assist with periods of reduced commercial activity.
What does a good working capital indicate to a company?
Working capital represents a company’s ability to pay its liabilities from the assets available. Capital is a crucial measure of monetary health since creditors can measure a company’s ability to pay off its debts within a year. It is important because it’s a measure of a company’s ability to pay off short-term expenses or debts.
How credit management helps a company?
Our credit management helps your company to ensure the willingness and capacity of the customers to pay the bills and to analyse market conditions and predict trends with risk mitigation measures.
Is it good to purchase goods during low prices and to keep as Inventory?
In order to make any new purchases the company cash flow must be considered. It is always better to maintain inventory level at Optimum by following Economic order quantity (EOQ).