Working capital is the amount or money by which you will start or running your
business. You will get financing or money by two ways one you go to a bank for financing or
any other leasing firm while the second option you have is to add some equity in your business.
Above mention two ways are the most probably common and traditional ways on which a
business man worked.

You will be calculate all of your business capital and then you will decide that
you need to increase your business or business capital. Like you are going to add a new unit in
your firm for e.g. You have a garment firm and you want to add a few more stitching machines
in your production area to increase the production of your firm.

Obviously you need more finance to extend your business capital. And your
business capital is showing the worth of your business so the more you put in your capital the
more you added to your word. You will get easily more finance or you are able to borrow some
money from any financial institute or bank if you have a huge business capital. Because your
business assets really mean for the security issue of any bank or any other financial firm.

Also a businessman needs a good working relationship with the raw material
suppliers because if the suppliers of raw material trust for you and provides your goods without
any advance payment then you have a chance to grow faster in your business so these are the
techniques to grow up your business capital.

Now a day in such type of unbalancing financial conditions or environment
banks are not providing loans easily. For the many years we are examining that the banks
are financing those people who never need this just because of their huge capital of business
or assets. That’s why I always said that you need to be growing up your business capital and
launched new products with new ideas in market because actually you are selling your idea. If
you stop growing then you will be dying soon or you will start losing your business capital so be
passionate and stand in the market with new ideas and products.

Here I advise you to remember the R.P factor if you are a commerce graduate
then you know it that what is the R.P factor following are the basic points of R.P factor.

(Choose a right place for your business)

(The product you are launched in the market is good as far as quality

(Fix a reliable and economical price for consumer’s)

If you are following the R.P factor to start a business then you will be
successful to grow up your business capital quickly and the financiers or banks are also looking
your firm on the basis of these grounds and the profit ratio which is shown as per your credit
history. If your business providing good result and your name is famous in the town then
every one attracts to you. And willing to invest in your firm. As I told you before that if you are
growing then you are alive if you stop growing then you will be dying. So stay in the market
with new ideas and a huge business capital.

Working Capital

Author: NoaEmmels

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