“Why Working Capital is Everyone’s Problem — and How to Fix It”

Part 1 – What Is Working Capital, Really?

Working capital isn’t just a finance metric—it’s the lifeblood of your daily operations.

You need it to:

• Pay fixed costs like salaries, rent, transport
• Cover variable costs like vendor payments, port charges, taxes
• Handle the unexpected—like booking a charter or paying urgent duties

What it’s not for:
🚫 Buying trucks
🚫 Hiring new staff
🚫 Building warehouses

Those are investments—and should be funded through excess cash or loans, not your daily working capital.

Bottom line: If you don’t manage it properly, even profitable companies can struggle to pay their bills.

👉 In Part 2, I’ll cover why working capital problems happen more often than you think—and whose fault it really is.

#WorkingCapital #CashFlow #Digitization #AIinFinance #OCR #RPA #FinanceTransformation #BusinessEfficiency #DigitalOperations #mmlogistix