In addition, Recylex SA, the Group`s parent company, has arranged a new equity line with Kepler Cheuvreux of up to 2,400,000 shares following expiration of the previous line. Recylex`s objective in France is to increase the cover of the cash requirements arising from its ongoing operations. Yves Roche, Chairman and Chief Executive Officer of the Recylex Group, commented: "The closing of the financing agreements in Germany represents a major step forward in our strategy to put the Lead segment`s business model on a sustainable footing. The purpose of the new furnace is to improve our profitability in the Lead segment and across the Group as a whole. In addition, it will give us greater flexibility on the procurement front, enabling us to source materials producing higher margins. Construction work can now begin. I would like to congratulate all our financial and operational teams.
The longer the cycle is, the longer a business is tying up capital in its working capital without earning a return on it. This transaction was so simple and fast that we decided to use National Funding again; we are in the process of getting another loan. For further insight, many analysts use an indicator of financial strength called the “current ratio.” Though, the same can’t be said about the negative working capital. 2 Many funders believe that businesses can’t be sustainable with a negative working capital, which is a wrong way of thinking. A company with lots of working capital may be able to invest in long-term productivity improvements. Calculate working capital.
No two businesses will have the same working capital needs, so ensuring customized solutions is vital. Your start-up money will secure a facility, pay utilities, purchase inventory and equipment, and pay salaries during those first months when very little is coming in as revenue. On paper, your business looks great. Unused inventory represents tying up funds as well as paying for the space in which to store it. The business is making plenty of money on paper but can't manage its cash needs. Our loans and lines of credit are smart, affordable ways to meet routine business expenses with ease. In today’s economy, it is still possible to borrow for a new business, but you will really have to do your homework to be taken seriously without being taken advantage of.