Capital has a way of finding its best friend.
The availability of Capital has always been limited and the objective of each business is the maximise the output from the limited capital they have access to.
The sources of Capital are largely in the form of Debt and Equity or instruments that are a combination of these two. The application of Capital is varied, largely categorised into Long Term Application for construction of fixed assets, acquisition of businesses, long term advances, etc. and Short Term Application like Inventory, debtors, etc.
The most important factors for any business is to ensure the availability of capital and to ensure that long term capital is used to acquire long term assets and short term capital is used to acquire short term assets.
Capital is the most efficient employee any business can have as it works 24*7, 365 days a year without asking for any leave of absence. It is the prerogative of the owner of the Capital to ensure its most efficient utilization. And this is the ultimate objective for us when advising our clients.