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A sound Net Working Capital increases the creditworthiness of our firm within the eyes of the financial institutions. Also, it allows your firm to get a daily provide of goods and the provision of short-term loans. Examples of your present liabilities embody accounts payable, bills payable, and outstanding bills. Free cash flow—enough cash-on-hand to satisfy their operational prices like paying staff, taking care of bills, and buying extra inventory for the future.

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