|
SW Ohio | You're talking about two complete different things, cash flow and working capital.
Working capital is your "parachute". You rely on working capital to get you out of a jam if you experience a loss in an operating cycle. Right now, margins are thin and most are projecting a breakeven to a loss, meaning you'll have to dip into your working capital to cover any deficiencies in payments, family living, etc.
Bankers want to know how big your "parachute" is in the event of a loss. They want to make sure they're adequately secured on their operating line and have minimal risk of a charge off. If you're not happy with how the system works then you need to go somewhere else or put yourself in a position to not have to worry about the bank. If you don't understand that, you'll have a tough row to hoe.
Edited by YeeYee 4/26/2017 10:49
| |
|
Line of credit limits
