Start a Restaurant

What is working Capital?

In a business it can be defined as its current assets less its current liabilities. Current assets comprise cash, stocks of raw materials, work in progress & finished goods, marketable securities such as Treasury bills & amounts receivable from from debtors. Current liabilities comprise creditors falling due within one year, & may include amounts owned to trade creditors, taxation payable, dividend payments due, short term loans, long term debts maturing within one year & so on.

Every business needs adequate liquid resources to maintain day to day cash flow. It needs enough to pay wages & salaries as they fall due & enough to pay creditors if it is to keep its workforce & ensure its supplies. Maintaining adequate working working capital is not just important in the short term. Sufficient liquidity must be maintained in order to ensure the survival of the business in the long term as well. Even a profitable company may fail if it does not have adequate cash flow to meet its liabilities as they fall due. (more…)

When companies are dealing with refreshments and foodstuff the single biggest factor that determines their chances of clinching the deal is restaurant equipment financing. The business is so competitive that the other players in the market often steal a march on your business. So restaurant equipment financing is vital for the healthy financial health of a restaurant business. This is not so true for other establishments where you have other revenue models to choose from. Restaurant equipment financing takes you a step forward by unleashing the potential of a lease for your business.

In due course of a lease program you actually realize how restaurant equipment financing is beneficial. There are a lot of merits from this type of funding.

• The way a lease program works for restaurant equipment financing is beneficial to the operational revenue of the business. They offer soft loans for a longer duration unlike banks which lend you a limited sum and often burden you with stringent rules and deadlines. In case of leasing, you have smaller installments to pay off every month. The extra money that is generated from the business can be used to run the restaurant in a better fashion. It could also be channeled into the working capital of the business. This will ensure a solid financial ground to build your business on. (more…)