How much working capital required for dealer

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Accepted Answer

The working capital required for a dealer depends on various factors such as the size of the dealership, inventory levels, operational expenses, and credit terms.

Working capital is the amount of money needed to cover day-to-day operational expenses and support business growth.
Factors influencing the working capital requirement include inventory management, accounts receivable, accounts payable, and cash flow.
A larger dealership with a wide range of products and higher sales volume may require more working capital.
Operational expenses like rent, utilities, salaries, and marketing costs also contribute to the working capital requirement.
Credit terms offered to customers and suppliers can affect the need for working capital. Longer credit terms may require higher working capital.
For example, a car dealership with a large inventory, high sales volume, and extensive marketing efforts may require a significant amount of working capital.
On the other hand, a smaller dealership with limited inventory and lower sales volume may have a lower working capital requirement.

How much working capital required for dealer

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