Day-to-Day Needs

Day-to-Day Needs

Businesses need to be sure that they have enough money on hand to pay their suppliers and cover their overheads when the payments are due.

Day-to-Day Needs

Businesses need to be sure that they have enough money on hand to pay their suppliers and cover their overheads when the payments are due. However, sales and expenses fluctuate and there may be seasonal peaks and troughs. Businesses that sell on credit may also face delays in getting paid.

As a result, businesses who manage their finances and cashflows well can face periods where they need additional working capital financing to meet shortfalls.