NITMB Group

I completely relate because I went through the same confusion early on in my business. I knew I had money coming in and bills to pay, but I couldn’t figure out the balance I could actually rely on to grow. What helped me was finding a simple explanation of trade working capital and how to calculate it, and it’s literally what I use now: what is trade working capital. This guide explains the trade working capital definition clearly and gives examples so it’s easier to see how inventory, accounts receivable, and accounts payable all play a role. I started using it to set targets for cash tied up in operations and to make better purchasing decisions. One big lesson I learned is that even small improvements, like negotiating longer payment terms with suppliers or tightening up receivable collection, can free up a surprising amount of cash without needing extra revenue. Also, checking trade working capital regularly gives you a sense of whether your growth is sustainable or if you’re just borrowing time until cash runs out. For me, it has become a routine part of financial management, and it really reduces stress because I can see the actual liquidity picture instead of guessing. Over time, understanding these numbers has made planning expansions or taking on new projects much more predictable and less risky.