Capital strategy
Plan for working capital before the need becomes urgent
A useful working capital plan connects the operating cycle, cash timing, and financing structure before a temporary gap becomes a constraint.
The operating cycle
Working capital is often a timing issue
A profitable company can still feel pressure when operating obligations come due before customer receipts arrive.
01
Map cash inflows
Review billing milestones, deposits, customer terms, collection history, and concentration.
02
Map cash outflows
Identify payroll, inventory purchases, vendor terms, taxes, and recurring obligations.
03
Define the timing gap
Measure seasonality, growth periods, delayed receivables, and other points where liquidity tightens.
Forecast the need
Separate recurring requirements from one-time events
Recurring operating needs may call for flexible availability; a defined purchase or transition may need a different structure.
- Build a rolling cash forecast using realistic collection and payment timing.
- Test slower collections and faster growth before choosing a facility size.
- Separate normal operating liquidity from expansion, equipment, or transaction costs.
- Identify the amount needed, when it is needed, and how long it is likely to remain outstanding.
Match the structure
Use the repayment source to guide the facility
The use of funds and the expected path back to cash help determine the relevant financing structure.
Working Capital
Flexible capital for recurring operating needs, seasonality, and timing differences.
Asset-Based Lending
Availability supported by eligible receivables, inventory, or other business assets.
Cash Flow Lending
Financing evaluated primarily against recurring cash generation and debt-service capacity.
Prepare early
Make the need easier to evaluate
Current, consistent information helps connect the requested amount to the operating cycle.
Current financials
Historical and interim financial statements with clear reporting periods.
Working capital detail
Receivable, payable, inventory, and customer-concentration reports when applicable.
Obligations and forecast
A complete debt schedule and a cash forecast tied to the requested use of funds.
Build liquidity around the operating cycle
Tell us where the timing pressure exists and what the business needs the capital to accomplish.
Financing is subject to application, underwriting, approval, eligibility requirements, and final documentation.