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Corporate finance is the branch of finance that focuses on the capital structure and funding sources of firms. Working capital is an essential component of corporate finance. As it represents the difference between a company's current assets (like cash, inventory, and accounts receivable) and its current liabilities (like accounts payable and short-term debt). That is why effective working capital management is essential for a company's financial health and growth. By keeping an eye on and making the best use of a company's current assets and obligations, it guarantees that it runs smoothly. Below are the terms associated with it: ·        Working Capital Cycle The time it takes to turn all of a company's net working capital—current assets less current liabilities—into cash is known as the working capital cycle. ·        Working Capital Finance Working capital finance , on the other hand, is a specific tool within w...

  Bill Discounting: A Comprehensive Overview We are all annoyed when our payments are postponed or halted. Now consider what MSMEs would do if they found themselves in a predicament where their payments were delayed or halted. Bill discounting is one strategy that they can employ to address these issues. In this guide, you will be provided detailed information on this discounting: What is the term "billing discounting?" Through the process of this discounting, a business can raise money for its urgent financial requirements by selling its accounts receivable, bills receivable, or trade receivable to a financial institution. In order to grant an advance against those debts, the financial institution can verify the legitimacy of the accounts receivable and the creditworthiness of the business. Who are the Participants in Bill Discounting? This discounting procedure involves three parties: ·        Drawer A drawer is a seller or business th...