As the lockdown begins, companies’ cashflows are disappearing overnight. But they still have bills to pay. So they need cash. Just like households, companies keep a certain amount of cash handy to pay for the day-to-day running of their business. This is called working capital. Working capital is continually replenished by sales and depleted by bills. Should a company ever run low on cash, the bank is normally its backup. A company usually has a pre-agreed line of credit with its bank, which entitles it to a certain amount of cash with no questions asked. Now a growing number of…
Don’t miss out on what is going on with our daily unique stories from our team of skilled journalists and insightful commentators. Members of The Currency get full access to over 4,000 exclusive interviews, investigations, and analysis, plus over 460 podcasts. Annual membership is just €200 for the first year, a saving of €100. Or try The Currency for the first month for a special introductory rate of €5, a saving of €20. Cancel at any time. To become a member today click here.
Join The Currency
INTRODUCTORY OFFER: Full annual membership for just €200.