Capital concerns – Ensuring your firm has the financial resources it needs

Description

Abstract: A successful firm requires both working capital to fund daily operations and long-term capital to buy assets and make strategic investments. Unfortunately, determining a firm’s capital needs and meeting them are two of the most difficult tasks an administrator will face. This article explains how different firms have different capital requirements and ways of determining them. It also discusses sources of funding, while a sidebar explains the dangers of undercapitalization.