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Working capital

Find out more about the benefits and risks of using your assets to finance your business. Options available include hire purchase, leasing, invoice factoring and discounting, and commercial mortgages.
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Latest on working capital

Read our latest features and articles on working capital and asset finance.
ICAEW disappointed by new reporting to tackle late payments
  • Article
  • 09 Oct 2024
New reporting requirements and a new Fair Payment Code among the measures outlined by government to target improvements in payment times, especially to small businesses and the self-employed.
Grant opportunities for Small Businesses
  • Article
  • 16 May 2024
Both national and industry sector grants exist to help Small Businesses in the adoption and development of new technology and contribution to net zero. Dell Technologies can help you assess which grants you may be eligible for to assist with purchasing IT hardware or services.
The AP automation benefits your finance department is missing out on
  • Article
  • 18 Apr 2024
The primary focus of finance department digitisation should be the incorporation of AP automation - more specifically, an intelligent automated invoice process. This is how a business will achieve a cost-efficient, streamlined accounts payable process. Learn more about the benefits in this article.
CFO confidence in cash-flow data remains low
  • Article
  • 14 Feb 2024
Organisations that haven’t automated their systems still struggle with real-time cash-flow visibility.
Exploring liquidity risk management in funds
  • Article
  • 20 Oct 2023
In the realm of finance, open-ended funds play a distinct role, shaped by their unique characteristics. Reuben Wales examines their operational aspects and the hurdles they face.
Cash remains king as businesses gear up for growth
  • Article
  • 17 Apr 2023
Why finance functions tightened their cash management and forecasting during the pandemic – and how those good habits have remained.
Exclusive Working capital support – have you considered the General Export Facility?
  • Article
  • 28 Jul 2022
Julie Mole, from Crowe UK shares some advice.
Exclusive Is Excel still fit for purpose?
  • Article
  • 19 Oct 2021
And if not, what are the alternatives?
Read more

ICAEW Guides

Asset-based finance
  • Helpsheets and support
  • 2021
Asset-based Finance or ABF is a collective term used to describe invoice finance (IF), and asset-based lending (ABL). Invoice finance includes factoring, invoice discounting and supply chain finance.
Debt finance options
  • Listing
  • 2021
Find out about the potential debt options that could provide the finance your business needs.
Leasing and hire purchase
  • Helpsheets and support
  • 2021
Leasing and hire purchase are types of debt finance used by businesses to obtain a wide range of assets – everything from office equipment to vehicles.

eBooks

The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Exclusive Managing working capital
  • eBook chapter
  • 2021
  • Peter Atrill, Eddie McLaney
  • Pearson Education Limited
This chapter considers the factors to be taken into account when managing the working capital of a business. The book is aimed mainly at management accounting students.
Exclusive Short-term finance and working capital management
  • eBook chapter
  • 2019
  • Denzil Watson, Antony Head
  • Pearson Education
Written in an approachable, 'user-friendly' style, this section covers the objectives of working capital management, working capital policies, working capital and the cash conversion cycle, overtrading, managing inventory, managing cash and managing trade receivables.
Exclusive Internal controls: treasury process
  • eBook chapter
  • 2019
  • Christine H. Doxey
  • Wiley
  • Internal Controls Toolkit
A set of internal control standards for the treasury process, which is concerned with matters such as business cash flow, investment management, foreign exchange management, and the payment of dividends.
Exclusive Balance sheet and liquidity management
  • eBook chapter
  • 2013
  • Rajiv Rajendra
  • John Wiley & Sons
A complete guide to operating a corporate treasury from a global perspective. This chapter covers the management of cash flows and the need for working capital. It also looks at cost of capital and various sources of funding, before concluding with a look at credit ratings with an example methodology.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Business press

The ICAEW Library & Information Service provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.
Exclusive Disruption and the cash conversion cycle
  • Article
  • 01 Sep 2023
  • B.C.Bishal, Yatin Bhagwatm, Marinus DeBruine
When facing disruption, accountants can employ the cash conversion cycle (CCC) measure for insights into operational efficiency and working capital requirements. The authors give examples of CCC management from the airline and retail industries. They show how organizations can take different approaches to successfully restore their CCC, by implementing appropriate management strategies for their particular circumstances.
Exclusive A balanced approach to optimize working capital
  • Article
  • 01 Jul 2023
  • Don Freitas
The article describes a balanced approach to improve available working capital. Don Freitas suggests that the three pillars of working capital optimization should be: release cash, reduce cost, and improve service. He discusses how to improve inventory-related factors that can contribute to poor working capital performance and explains some solutions to improve working capital optimization.
Exclusive Bouncing back: Invoice finance can help support the UK's economic recovery
  • Article
  • 01 Nov 2021
  • Alex Waterman
Alex Waterman, Principal of Invoice Finance & Asset Based Lending at the industry body UK Finance, discusses how UK companies used invoice finance and asset based lending during the pandemic.
Exclusive Invoice power: How can invoice finance help companies trading internationally get paid?
  • Article
  • 01 Jul 2021
  • Lesley Batchelor
Lesley Batchelor looks at how companies exporting internationally can de-risk getting paid, focusing on invoice factoring and confidential invoice discounting.
Exclusive Safeguarding working capital: A disrupted economy will make it harder to manage receivables, payables, and inventory with efficiency
  • Article
  • 01 Jul 2020
  • Ramona Dzinkowski
Information on the challenges faced by the Covid-19 pandemic in the US along with role of disrupted economy to manage receivables, payables, and inventory with efficiency. It discusses how chief financial officers ensuring organizations' working capital management strategies and processes.
Exclusive Tax and the benefits of leasing
  • Article
  • 01 Jan 2020
  • Tony Crisp
Tony Crisp of Giess Wallis Crisp LLP provides a simple explanation of the accounting and tax treatment of leasing your IT.
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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on working capital and asset finance. Use the links below to see what we have available to request in our Library catalogue (Libcat).
Accounting essentials for hospitality managers
  • Library book
  • 2022
  • C.Guilding
  • Routledge
Aimed at non-accountant hospitality managers, this book provides a comprehensive overview of the most relevant accounting techniques and information for hospitality managers. Topics include: analysing transactions and preparing year-end financial statements; financial statement analysis; internal control; cost management issues; budgeting and responsibility accounting; flexible budgeting and variance analysis; performance measurement; cost information and pricing; working capital management; investment decision-making and revenue management.
A practitioner's guide to trade and commodity finance, 2nd ed.
  • Library book
  • 2022
  • G. Wynne (ed.)
  • Sweet & Maxwell
This book examines all aspects of trade and commodity financing, from pre-export financing to enforcement of security and insolvency issues. The authors consider the risks and risk management methods involved, along with issues around regulation and due diligence. It includes discussion of Islamic financing techniques.
Accounting for non-accountants
  • Library book
  • 2020
  • D.Horner
  • Kogan Page
An introductory text for managers and non specialists who wish to gain an overview of accounting. Includes chapters: financial record keeping; income statements; the balance sheet; further adjustments to the income statement; checking the double-entry system; accounting concepts; accounting for other business organisations; an introduction to business costing; marginal costing and decision making; standard costing; budgeting; working capital management; capital investment appraisal; an introduction to limited companies; published accounts of the limited company; accounting standards; statement of cash flows; accounting ratios; and the economic environment.
Working capital management: applications and cases
  • Library book
  • 2014
  • J.Sagner
  • John Wiley & Sons
This book reveals how to identify and put in place an efficient and effective use of current assets and liabilities of a company throughout each phase of a business's operating cycle. Learn how to plan, monitor and manage a company's collections, disbursements and bank account balances.
A practical guide to corporate cash pooling
  • Library book
  • 2014
  • S.Mainwaring
  • LexisNexis
Includes sections on cash management, cash pooling, netting and corporate taxes.
Guide to cash management: how to avoid a business credit crunch
  • Library book
  • 2012
  • J.Tennent
  • Profile Books
This guide explains the six critical aspects of cash and cash flow: forecasting; treasury management, working capital efficiency, investment opportunities, product profitability, and cash surpluses.

External resources - Guides and surveys

2024 Working Capital Survey
  • Website
  • 2024
  • Hackett Group

Latest Hackett Group survey comparing the working capital management of the top 1000 US companies, ranking the best and worst performers by industry sector. It covers working capital trends and opportunities and the drivers of working capital. Highlights for the APAC region and Europe are also available.

Working Capital Study 21/22
  • Website
  • 2021
  • PwC

PwC survey analysing net working capital and the impact of the pandemic on supply chains. It includes steps to mitigate risks and data on different industry sectors. The 2019 report is also available.

Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided 'as is' with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

External resources - Industry bodies

UK Finance
  • Website
  • UK Finance
A collective voice for the UK banking and finance industry, including members who provide invoice finance and asset based lending (IFABL) products and services.
Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided 'as is' with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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