5 Common Mistakes to Avoid So You Can Protect Your Business’s Working Capital

1. Ignoring Cash Flow Management

Poor cash flow tracking can drain your working capital. Monitor inflows and outflows regularly.

2. Ignoring Payment Cycles

Poor receivables and payables management disrupts cash flow. Set clear credit terms.

3. Overstocking Inventory

Excess inventory locks up funds. Optimise stock levels to free up working capital.

4. Overestimating Revenue Projections

Overly optimistic sales forecasts can lead to cash flow shortages and financial strain.

5. Relying Only on Profits

Profits alone won’t sustain cash flow. A working capital loan can cover short-term gaps.

Looking to Optimise Your Business’s Working Capital?

Apply now for an SMFG India Credit working capital loan of up to INR 75 lakhs*!

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* Please note that this webstory is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us