Our aim is to ensure you are financially equipped to handle any situation that comes your way. Talk to an eCapital expert for fast, flexible financing solutions to restore your business’ working capital in under 48 hours.
Unexpected expenses can derail any business’ best-laid plans and can strike any business, anywhere, at any moment.
A promising opportunity may emerge, economic or market conditions may fluctuate, or a sudden legal issue may arise. Regardless of the situation, positive or negative, your financial readiness may be caught off guard.
Trust eCapital to be your catalyst for success when your business faces unexpected situations. We’re your starting point for immediate, short-term financing.
Every business has its challenges. Successful business leaders focus on what they can control: their strategy, growth plans, efficiency and customer satisfaction.
But even with all the right pieces in place, unexpected events can happen.
Any of these events could end up a missed opportunity or even worse, cause harm to your business. The solution is a fast and flexible bridging loan, available when you need it, on terms that work for you.
Cash on hand consists of finances set aside expressly for an unexpected use—this could be rainy day funds for an emergency or money to put toward unanticipated investment or expansion opportunities.
Cash on hand is just an expression; it’s a term for how much of a cash buffer your business has access to. You can approximate your business’ liquidity using formulas and financial ratios such as the current ratio.
Paying attention to the current ratio allows you to handle issues quickly as they arise.
The current ratio shows how many times your business’ current or liquid assets can cover its short-term debt or unexpected events.
A current ratio of 1.2 to 1 or higher generally provides a strong enough cushion to weather unexpected events. A current ratio that is lower than the industry average may indicate a higher risk of distress or default.
In times of economic uncertainty, most businesses prefer a higher current ratio of 2 to 1 or 3 to 1.
Leveraging eCapital’s creative financing solutions will allow you to quickly improve your current ratio and better prepare your business for unexpected events.
Every organization has resources that can be leveraged to create working capital. Through our growing suite of financial products, we can provide the right solution to meet their capital needs head on.
Get access to revolving funds to support your business goals.
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We work with a wide array of industries. Our clients are all business-to-business entities, meaning they invoice other companies (not consumers) for products and services provided.
eCapital is an award-winning, industry-leader in the alternative financing space. Here are a few reasons why businesses choose eCapital as their alternative financing partner:
Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.
Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.
We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.
We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.
We believe in transparency in all we do. That means no surprises when it comes to our agreements.
Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.
For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!
Increasing cash on hand can be achieved through several strategies. Firstly, you can improve your revenue by increasing sales, raising prices, or introducing new products or services. Secondly, you can reduce expenses by cutting non-essential costs, negotiating better deals with suppliers, or improving operational efficiency. Additionally, you can speed up cash inflow by improving your invoicing and collection processes, offering incentives for early payments, or using factoring services. Lastly, consider securing financing like a line of credit or a loan, or selling non-essential assets.
The average amount of cash on hand for businesses can vary widely based on several factors including the size of the business, the industry in which it operates, the business’s stage of growth, and current economic conditions.
As a general rule, many businesses aim to keep enough cash on hand to cover at least three to six months’ worth of operating expenses. This is considered a safe amount that allows the business to continue operations even in the event of an unexpected downturn or expense.
However, startups or companies in growth stages might maintain more cash to fund new investments, whereas mature companies might hold less as they could have steady cash flows. In some industries like technology or biotech, companies might have even larger cash reserves due to the high levels of uncertainty and investment requirements.
The cash flow statement provides a detailed summary of how a company’s cash position changes over a specified period due to its operating, investing, and financing activities. To calculate the available cash at the end of a given period from a cash flow statement, follow these steps:
The result will be the ending cash balance, which is the available cash at the end of the period.
So, the formula would look like this:
Ending Cash Balance (Available Cash) = Starting Cash Balance + Net Cash from Operating Activities + Net Cash from Investing Activities + Net Cash from Financing Activities
Remember, while this calculation gives you the cash available at the end of the period, it’s also essential to understand the nature of these cash flows. Some cash inflows or outflows may be one-time events or might not be sustainable in the long term.
“Cash on hand” refers to the amount of money that a company has readily available at any given moment. This can include physical cash stored in a safe or a cash register, as well as the funds available in bank accounts, like checking accounts or highly liquid savings accounts. It represents the most liquid form of assets a company possesses and can be used immediately to meet any short-term obligations or unexpected costs.
In a broader sense, “cash on hand” also refers to a company’s ability to cover its current liabilities.
