How can you raise adequate fund for the enhanced working capital requirements?

Question

Accepted Answer

To raise adequate funds for enhanced working capital requirements, a CFO can consider various strategies such as optimizing cash flow, securing external financing, and implementing cost-cutting measures.

Optimize cash flow by improving collections, reducing payment cycles, and managing inventory efficiently.
Secure external financing through bank loans, lines of credit, or issuing bonds or shares.
Implement cost-cutting measures such as reducing non-essential expenses, renegotiating contracts, and improving operational efficiency.
Explore alternative funding options like factoring, invoice discounting, or supply chain financing.
Consider strategic partnerships or joint ventures to share costs and resources.
Utilize financial forecasting and budgeting to accurately assess working capital needs and plan accordingly.

Accepted Answer

Since the Company had good orders in hand, i recommended suppliers credit, which worked out amazingly. I managed to mobilize 50 million INR through Supplier credit within 2 months.

How can you raise adequate fund for the enhanced working capital requirements?

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