Hey, I'm on Medial • 1y
Imagine a company's purchasing team negotiates amazing deals with suppliers, getting extended credit terms (like a long payment deadline on your credit card). This frees up cash. But what if the sales team is so good they collect payments from customers quickly (like immediately paying off your credit card)? Now the company has excess cash sitting around. This is where things get tricky. If the company has long-term projects needing funding (like buying new equipment), they might be tempted to use that short-term cash to pay for them. The problem? It's like using your credit card to buy groceries - it might seem convenient, but it can lead to big problems down the road if you can't pay it back on time. This is a classic financial management mistake - using short-term funds for long-term needs. ❌ Lesson learned: Businesses need to carefully match the timing of their cash inflows and outflows to avoid financial trouble.
CA Aspirant|Content ... • 11d
Daily dose of financial ratios by Anirudh Gupta Current ratio: =Current assets/current liabilities Purpose: -To evaluate the company's short-term financial health and liquidity. -This ratio tells us whether the company can meet its short term ob
See MoreSoftware Engineer • 7m
Many people want to make big purchases online but don't have a credit card. At the same time, some credit card holders have unused credit limits. ConnectCred solves this problem by allowing shoppers to make purchases through a service that connects t
See MoreHey I am on Medial • 1y
Do you use a RuPay credit card with UPI? How often does your credit card bill exceed your expectations? Are you spending more because of your credit card? I just want to understand whether this could become another potential debt trap for Indians
See MoreHey I am on Medial • 4m
Business Idea: Enabling Credit Card Discounts and Cashback for Non-Credit Card Users In today’s digital shopping era, e-commerce platforms like Flipkart, Amazon, and others frequently offer discounts and cashback deals, especially for customers using
See MoreDownload the medial app to read full posts, comements and news.