Bank Creditor Balances
By editor | November 24, 2007
The treasury situation represents the difference between the level of total values in the safe deposit and the level of the current bank contributions and of bank creditor balances.
The treasury situation can be as well determined as a difference between the working capital and the need of working capital. The treasury difficulties frequently occur if the treasury registers an increase of activity, increasing sales and the working capital need.
To attract long term resources into such a situation can’t be immediately performed.
Working capital increase becomes a restriction for the organization development, because a high level and long term financing comes after an organization development.
Working capital use has been as well contested. A lot of organizations use more and more frequently short time credit which is continuously renewed and acquires a permanent character.
Tags: capital increase creditor difficulties Finance Valley increasing sales registers short time time credit working capital
Topics: Finance Valley |