Categories: Capital

Solving Working Capital Problems in Credit Policy for Forex Trading

Working capital is an important consideration in setting a company’s credit policy. With the average rate of inflation outpacing the rate of economic growth, companies must ensure that adequate cash is available to finance day-to-day operations. Problems in managing working capital can have profound effects on a company’s credit policy. Lack of access to capital, inadequate liquidity, overly restrictive policies, and a deficiency in financial resources can all cause difficulties in maintaining a company’s credit. Appropriate management of working capital can help companies maximize their credit policy positions without compromising long-term profitability.

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