Is It Fine for One Company to Have as Low Or High a WCR as Another?

In the modern business environment, it is common for companies to aim to maintain a certain level of working capital ratio (WCR) in relation to their competitors. Generally speaking, the higher the WCR a company holds, the better; however, there are occasionally instances where it may be more beneficial for a company to have a lower WCR than a rival company. As is the case with any financial decision, the best approach to this situation is to consider the needs and objectives of the company in question.

Additional Business Financial Documents You Should Have to Prepare for Inventory Financing

Having accurate and up-to-date business financial documents is extremely important when it comes to inventory financing. This is because lenders need to understand the financial health of the business in order to determine whether they are willing to lend money for inventory purchases. By having accurate financial documents, lenders can assess the risk associated with the loan and decide whether or not they should provide financing.