{"id":999978421,"date":"2025-09-10T20:59:40","date_gmt":"2025-09-10T13:59:40","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978421"},"modified":"2026-06-09T13:53:15","modified_gmt":"2026-06-09T06:53:15","slug":"what-is-a-common-currency","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/","title":{"rendered":"What is net working capital? Which management tool helps businesses optimize cash flow?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Net working capital (WCC) is a key indicator of a company\u2019s short-term solvency \u2013 reflecting the difference between current assets and current liabilities. Positive WCC gives businesses more flexibility in managing cash flow and expanding their business, while negative WCC can lead to financial risks and operational disruptions. To optimize WCC and cash flow effectively, businesses should take advantage of automated financial management tools such as accounting software, CRM or real-time cash flow platforms.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, <\/span><a href=\"https:\/\/bizzi.vn\/\"><b>Bizzi<\/b><\/a><span style=\"font-weight: 400;\"> will decode the concept of what net working capital is, the formula and suggest tools to support business owners and accountants to make smarter financial decisions.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_la_gi_Net_Working_Capital_%E2%80%93_NWC\" >What is Net Working Capital (NWC)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Vi_Sao_Von_Luu_Dong_Rong_Quan_Trong_Voi_Doanh_Nghiep\" >Why Is Net Working Capital Important To Businesses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cong_Thuc_Tinh_Von_Luu_Dong_Rong_Cac_Thanh_Phan_Chinh\" >Net Working Capital Formula &amp; Key Components<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cong_Thuc_Tinh_Von_Luu_Dong_Rong_Don_Gian_De_Hieu\" >Simple &amp; Easy to Understand Net Working Capital Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cac_Thanh_Phan_Anh_Huong_Den_Von_Luu_Dong_Rong_Tren_Bang_Can_Doi_Ke_Toan\" >Components Affecting Net Working Capital (On the Balance Sheet)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Y_Nghia_Cua_Von_Luu_Dong_Rong_%E2%80%9CDoc_Vi%E2%80%9D_Suc_Khoe_Tai_Chinh_Doanh_Nghiep\" >The Meaning of Net Working Capital: \u201cReading\u201d the Financial Health of a Business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_Duong_%3E0_Dau_Hieu_Cua_Su_On_Dinh_Tiem_Nang\" >Positive Net Working Capital (&gt;0): A Sign of Stability &amp; Potential<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_Am\" >Negative Net Working Capital (&lt;0): Warning of Liquidity Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_Bang_0_0_Rui_Ro_Tiem_An_Can_Duoc_Danh_Gia\" >Net Working Capital Zero (=0): Potential Risks That Need to Be Assessed<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Nhu_Cau_Von_Luu_Dong_Rong_Cua_Doanh_Nghiep_Yeu_To_Quyet_Dinh_Hieu_Qua_Hoat_Dong\" >Net Working Capital Needs of a Firm: A Determinant of Operating Efficiency<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Nhu_Cau_Von_Luu_Dong_Rong_La_Gi\" >What is Net Working Capital Needs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cong_Thuc_Tinh_Nhu_Cau_Von_Luu_Dong_Rong_WCR\" >Formula for Calculating Net Working Capital Requirement (WCR)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cac_Yeu_To_Anh_Huong_Den_Nhu_Cau_Von_Luu_Dong_Rong\" >Factors Affecting Net Working Capital Needs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Phan_Biet_Von_Luu_Dong_Rong_Voi_Cac_Khai_Niem_Lien_Quan\" >Distinguishing Net Working Capital From Related Concepts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_va_Von_Luu_Dong\" >Net Working Capital and Working Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Von_Luu_Dong_Rong_va_Von_Dieu_Le\" >Net Working Capital and Authorized Capital<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Toi_Uu_Von_Luu_Dong_Rong_Voi_Giai_Phap_Cong_Nghe_Tu_Bizzi\" >Optimize Net Working Capital With Technology Solutions From Bizzi<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Phuong_Phap_Chung_De_Quan_Ly_Von_Luu_Dong_Hieu_Qua\" >General Approaches to Effective Working Capital Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#_Bizzi_Financing_%E2%80%93_Giai_Phap_Tai_Tro_Von_Luu_Dong_Toan_Dien_Cho_Doanh_Nghiep\" >\u00a0Bizzi Financing \u2013 Comprehensive Working Capital Financing Solution for Businesses<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Ket_noi_doanh_nghiep_voi_nguon_von_nhanh_chong_va_minh_bach\" >Connecting businesses with fast and transparent capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Cac_hinh_thuc_tai_tro_Bizzi_Financing_cung_cap\" >Types of financing Bizzi Financing offers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Loi_ich_vuot_troi_khi_su_dung_Bizzi_Financing\" >Outstanding benefits when using Bizzi Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Ung_dung_thuc_te\" >Practical application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Xu_Ly_va_Doi_Chieu_Hoa_Don_Dau_Vao_IPA_3-Way_Matching\" >Input Invoice Processing and Reconciliation (IPA + 3-Way Matching)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Quan_Ly_Chi_Tieu_Doanh_Nghiep_Bizzi_Expense\" >Business Expense Management (Bizzi Expense)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Quan_Ly_Cong_No_Accounts_Receivable_Management_%E2%80%93_ARM\" >Accounts Receivable Management (ARM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Tich_Hop_He_Thong_ERP\" >ERP System Integration<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/bizzi.vn\/en\/what-is-a-common-currency\/#Ket_Luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_la_gi_Net_Working_Capital_%E2%80%93_NWC\"><\/span><strong>What is Net Working Capital (NWC)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Basic concept:<\/b><span style=\"font-weight: 400;\"> Net working capital is an important financial ratio that shows the difference between a company&#039;s current assets and current liabilities. In other words, it is the portion of current assets that is financed by long-term capital. The basic formula is:<\/span><\/p>\n<p style=\"text-align: center;\"><b>Net Working Capital = Current Assets \u2013 Current Liabilities<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In which, short-term assets include cash, receivables, inventories and assets that can be converted into cash within 12 months; short-term liabilities include payables, payable expenses and debts due within 12 months.<\/span><\/p>\n<p><b>Other names:<\/b><span style=\"font-weight: 400;\"> Net working capital.<\/span><\/p>\n<p><b>Meaning:<\/b><span style=\"font-weight: 400;\"> Net working capital is a key measure of a company&#039;s liquidity and ability to meet short-term financial obligations without experiencing cash flow difficulties. A positive NWC indicates that the company is able to pay short-term debts and maintain stable operations, while a negative NWC warns of liquidity and cash flow risks.<\/span><\/p>\n<figure id=\"attachment_999978424\" aria-describedby=\"caption-attachment-999978424\" style=\"width: 1920px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999978424 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi.jpg\" alt=\"What is net working capital?\" width=\"1920\" height=\"1080\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/von-luu-dong-rong-la-gi-18x10.jpg 18w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption id=\"caption-attachment-999978424\" class=\"wp-caption-text\">Learn about net working capital<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Vi_Sao_Von_Luu_Dong_Rong_Quan_Trong_Voi_Doanh_Nghiep\"><\/span><strong>Why Is Net Working Capital Important To Businesses?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Net working capital is an important financial indicator that reflects a company&#039;s ability to manage short-term assets and short-term liabilities, thereby assessing operational efficiency and overall financial health.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensuring solvency and stable operations:<\/b><span style=\"font-weight: 400;\"> A positive NWC shows that the business is able to cover its daily expenses (salaries, raw materials, rent, etc.), keeping the business running smoothly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Support growth and expansion:<\/b><span style=\"font-weight: 400;\"> A reasonable NWC level provides a \u201cfinancial cushion\u201d, allowing businesses to seize new investment opportunities without relying too much on short-term debt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reflecting financial health and risk management:<\/b><span style=\"font-weight: 400;\"> NWC is an early indicator of the ability to cope with economic fluctuations, helping management make timely decisions to maintain sustainability. Businesses can adjust their strategies <\/span><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi-la-gi-cach-quan-ly-chi-phi-doanh-nghiep\/\"><span style=\"font-weight: 400;\">cost management<\/span><\/a><span style=\"font-weight: 400;\"> and cash flow to gain competitive advantage.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cong_Thuc_Tinh_Von_Luu_Dong_Rong_Cac_Thanh_Phan_Chinh\"><\/span><strong>Net Working Capital Formula &amp; Key Components<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cong_Thuc_Tinh_Von_Luu_Dong_Rong_Don_Gian_De_Hieu\"><\/span><strong>Simple &amp; Easy to Understand Net Working Capital Formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Basic formula:<\/b><\/p>\n<p><span style=\"color: #ff0000;\"><strong>NWC = Current Assets \u2212 Current Liabilities\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">In there:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Current assets<\/b><span style=\"font-weight: 400;\">: Includes cash, short-term receivables, inventories and assets that can be converted to cash within one year.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short-term debt<\/b><span style=\"font-weight: 400;\">: Includes debts that must be paid within one year, such as short-term loans, payables to suppliers, taxes payable, and salaries payable.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b>Alternative formula (based on long-term funding):<\/b><\/p>\n<p><span style=\"color: #ff0000;\"><strong>NWC = Long-term capital \u2013 Long-term assets<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">In there:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term capital<\/b><span style=\"font-weight: 400;\">: Includes equity and long-term debt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term assets<\/b><span style=\"font-weight: 400;\">: Includes fixed assets and other assets with a useful life of more than one year.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Illustration:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose a business has the following figures:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Current assets<\/b><span style=\"font-weight: 400;\">: 5 billion VND<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short-term debt<\/b><span style=\"font-weight: 400;\">: 3 billion VND<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Apply the basic formula:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">NWC = 5 billion VND \u2212 3 billion VND = 2 billion VND<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that the business has VND 2 billion in net working capital, showing its ability to pay short-term obligations and maintain business operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meaning of net working capital<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>NWC &gt; 0<\/b><span style=\"font-weight: 400;\">: The business has enough current assets to pay short-term debts, showing a stable financial situation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>NWC &lt; 0<\/b><span style=\"font-weight: 400;\">: Businesses that do not have enough current assets to pay short-term debts may face liquidity difficulties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>NWC = 0<\/b><span style=\"font-weight: 400;\">: The business has current assets equal to short-term liabilities, a balanced financial situation but no room to deal with risks.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cac_Thanh_Phan_Anh_Huong_Den_Von_Luu_Dong_Rong_Tren_Bang_Can_Doi_Ke_Toan\"><\/span><strong>Components Affecting Net Working Capital (On the Balance Sheet)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To understand more about <\/span><b>net working capital<\/b><span style=\"font-weight: 400;\"> (Net Working Capital \u2013 NWC), first, you need to understand the components of the balance sheet. Net working capital is the difference between the current assets and current liabilities of the business, reflecting the short-term solvency and financial flexibility. A detailed analysis of each component helps business owners and accountants accurately assess the financial situation and make appropriate decisions.<\/span><\/p>\n<p><b>1. Current Assets<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Current assets are assets that can be converted into cash within 12 months. They include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash and cash equivalents<\/b><span style=\"font-weight: 400;\">: Cash on hand, bank deposits, short-term highly liquid investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounts Receivable<\/b><span style=\"font-weight: 400;\">: Customer debt, employee advances, tax refunds\u2026<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inventory<\/b><span style=\"font-weight: 400;\">: Raw materials, unfinished products, finished products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Prepaid expenses<\/b><span style=\"font-weight: 400;\">: Prepaid office rent, prepaid insurance\u2026<\/span><\/li>\n<\/ul>\n<p><b>2. Current Liabilities<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Current liabilities are debts that must be paid within 12 months. They include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounts payable<\/b><span style=\"font-weight: 400;\">: Debt to suppliers, employee salaries, operating costs...<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short term loan<\/b><span style=\"font-weight: 400;\">: Bank or credit institution loans with a term of less than 1 year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax payable<\/b><span style=\"font-weight: 400;\">: Value added tax, corporate income tax...<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unearned Revenue<\/b><span style=\"font-weight: 400;\">: Customer pays in advance for services\/products not yet provided.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Understanding and analyzing these components helps businesses assess their short-term solvency and manage cash flow effectively. Especially for small and medium-sized enterprises, closely monitoring items on the balance sheet is very important to ensure stable and sustainable business operations.<\/span><\/p>\n<figure id=\"attachment_999978423\" aria-describedby=\"caption-attachment-999978423\" style=\"width: 1920px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-999978423 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong.jpg\" alt=\"Components Affecting Net Working Capital\" width=\"1920\" height=\"1080\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/thanh-phan-anh-huong-von-luu-dong-rong-18x10.jpg 18w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption id=\"caption-attachment-999978423\" class=\"wp-caption-text\">Components that affect a business&#039;s net working capital<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Y_Nghia_Cua_Von_Luu_Dong_Rong_%E2%80%9CDoc_Vi%E2%80%9D_Suc_Khoe_Tai_Chinh_Doanh_Nghiep\"><\/span><strong>The Meaning of Net Working Capital: \u201cReading\u201d the Financial Health of a Business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Net Working Capital (NWC) is an important financial indicator that helps businesses assess their ability to pay short-term debts and maintain continuous business operations. Understanding the meaning of NWC helps business owners and accountants identify the current financial status and make timely decisions.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_Duong_%3E0_Dau_Hieu_Cua_Su_On_Dinh_Tiem_Nang\"><\/span><b>Positive Net Working Capital (&gt;0): A Sign of Stability &amp; Potential<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Meaning:<\/b><span style=\"font-weight: 400;\"> When NWC is positive, the company has more current assets than current liabilities, indicating good liquidity and low cash flow risk. This allows the company to maintain stable operations and flexibility in handling unexpected financial situations.<\/span><\/p>\n<p><b>Advantages:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High solvency:<\/b><span style=\"font-weight: 400;\"> Ensure the ability to pay due debts such as suppliers, employee salaries, taxes, helping to maintain reputation and good relationships with partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Easy access to loans:<\/b><span style=\"font-weight: 400;\"> A healthy financial situation makes it easier for businesses to borrow money from banks or raise capital from investors to expand their business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment potential:<\/b><span style=\"font-weight: 400;\"> Have enough resources to invest in new projects, improve production capacity and develop markets.<\/span><\/li>\n<\/ul>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> However, too high NWC may reflect inefficient use of capital, such as large inventories or idle cash that has not been invested profitably. Therefore, it is necessary to consider and optimize the use of current assets to achieve maximum efficiency.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_Am\"><\/span><strong>Negative Net Working Capital (&lt;0): Warning of Liquidity Risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Meaning:<\/b><span style=\"font-weight: 400;\"> When NWC is negative, the business does not have enough current assets to cover its current liabilities, indicating an unstable financial situation and may have difficulty paying its financial obligations.<\/span><\/p>\n<p><b>Risk:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payment difficulties:<\/b><span style=\"font-weight: 400;\"> Businesses may have difficulty paying suppliers, employees and other expenses, affecting business operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk of default:<\/b><span style=\"font-weight: 400;\"> Without timely remedial measures, businesses may face the risk of insolvency or bankruptcy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Difficulties in raising capital:<\/b><span style=\"font-weight: 400;\"> Weak financial situation makes it difficult for businesses to access loans or investment from outside sources.<\/span><\/li>\n<\/ul>\n<p><b>Measure:<\/b><span style=\"font-weight: 400;\"> To improve the situation, businesses need to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial restructuring:<\/b><span style=\"font-weight: 400;\"> Review debt and asset structure to rebalance resources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash flow optimization:<\/b><span style=\"font-weight: 400;\"> Tightly manage receivables, inventory and expenses to improve cash flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Looking for additional funding:<\/b><span style=\"font-weight: 400;\"> Consider suitable forms of capital mobilization such as bank loans, issuing shares or finding investors.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_Bang_0_0_Rui_Ro_Tiem_An_Can_Duoc_Danh_Gia\"><\/span><strong>Net Working Capital Zero (=0): Potential Risks That Need to Be Assessed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Meaning:<\/b><span style=\"font-weight: 400;\"> When NWC is 0, all current assets are financed by short-term capital, the business has no financial &quot;buffer&quot; to deal with unexpected fluctuations in business operations.<\/span><\/p>\n<p><b>Risk:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of financial reserves:<\/b><span style=\"font-weight: 400;\"> No backup resources to handle emergencies or investment opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sensitive to fluctuations:<\/b><span style=\"font-weight: 400;\"> Even a small incident such as slow debt collection or inventory backlog can lead to insolvency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Difficulties in expanding business:<\/b><span style=\"font-weight: 400;\"> Lack of capital to invest in new projects or expand production scale.<\/span><\/li>\n<\/ul>\n<p><b>Recommendation:<\/b><span style=\"font-weight: 400;\"> Businesses need:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Keep a close eye on cash flow:<\/b><span style=\"font-weight: 400;\"> Ensure cash flow is always stable and have a backup plan when needed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Effective asset management:<\/b><span style=\"font-weight: 400;\"> Optimize the use of current assets for maximum efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Timely assessment and adjustment:<\/b><span style=\"font-weight: 400;\"> Continuously evaluate financial situation and adjust business strategy to ensure sustainable development.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Nhu_Cau_Von_Luu_Dong_Rong_Cua_Doanh_Nghiep_Yeu_To_Quyet_Dinh_Hieu_Qua_Hoat_Dong\"><\/span><strong>Net Working Capital Needs of a Firm: A Determinant of Operating Efficiency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Net working capital requirement is an important indicator reflecting the ability to maintain regular operations of the business. Good management of this indicator helps ensure liquidity, reduce financial risks and optimize business efficiency.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nhu_Cau_Von_Luu_Dong_Rong_La_Gi\"><\/span><strong>What is Net Working Capital Needs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Concept:<\/b><span style=\"font-weight: 400;\"> Net Working Capital Requirement (NWC Requirement) reflects the amount of capital needed to maintain the daily business operations of the enterprise. This includes the management of inventory, receivables and payables. NWC Requirement helps the enterprise determine the amount of capital needed to maintain production and business operations without experiencing shortages or surpluses of capital.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cong_Thuc_Tinh_Nhu_Cau_Von_Luu_Dong_Rong_WCR\"><\/span><strong>Formula for Calculating Net Working Capital Requirement (WCR)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Recipe:<\/b><span style=\"font-weight: 400;\"> WCR = Inventory + Accounts Receivable \u2013 Accounts Payable<\/span><\/p>\n<p><b>Meaning:<\/b><span style=\"font-weight: 400;\"> The WCR index helps businesses assess the level of &quot;capital buried&quot; in inventories and receivables. High WCR often shows that businesses are &quot;burying&quot; a lot of capital in inventories or receivables, or have not optimized payables, reducing the ability to invest in the future. Conversely, low WCR can show that businesses are effectively managing cash flow. <\/span><a href=\"https:\/\/bizzi.vn\/von-luu-dong-la-gi\/\"><span style=\"font-weight: 400;\">working capital<\/span><\/a><span style=\"font-weight: 400;\">, minimizing financial risk.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cac_Yeu_To_Anh_Huong_Den_Nhu_Cau_Von_Luu_Dong_Rong\"><\/span><strong>Factors Affecting Net Working Capital Needs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">NWC needs vary from business to business. It depends on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business lines:<\/b><span style=\"font-weight: 400;\"> The retail industry typically has large inventories, while the service industry focuses on managing receivables.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business cycle:<\/b><span style=\"font-weight: 400;\"> Highly seasonal businesses need larger NWC during peak periods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Growth rate:<\/b><span style=\"font-weight: 400;\"> Fast growing businesses need more NWC to finance expansion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Credit policy:<\/b><span style=\"font-weight: 400;\"> Collection and repayment policies directly affect WCR.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phan_Biet_Von_Luu_Dong_Rong_Voi_Cac_Khai_Niem_Lien_Quan\"><\/span><strong>Distinguishing Net Working Capital From Related Concepts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To avoid confusion, let&#039;s clarify the difference between Net Working Capital and related financial concepts:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_va_Von_Luu_Dong\"><\/span><strong>Net Working Capital and Working Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To understand the effectiveness of short-term financial management, it is first necessary to distinguish between working capital and net working capital, two concepts that are often confused.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Working Capital:<\/b><span style=\"font-weight: 400;\"> Represents the total current assets of the business. This is pure short-term solvency. The value is usually positive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net Working Capital:<\/b><span style=\"font-weight: 400;\"> Is the difference between current assets and current liabilities. This is a measure of long-term funds used to finance current assets, and can be positive, negative, or zero.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Von_Luu_Dong_Rong_va_Von_Dieu_Le\"><\/span><strong>Net Working Capital and Authorized Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To assess overall financial health, it is important to distinguish between fixed capital and variable net working capital, as each reflects a different aspect of business management.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Charter capital:<\/b><span style=\"font-weight: 400;\"> Is the total capital that members\/shareholders commit to contribute to the company upon establishment. This is a fixed number recorded on the business license.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net working capital:<\/b><span style=\"font-weight: 400;\"> Is a volatile financial indicator, reflecting short-term solvency and financial flexibility in daily operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Important Note:<\/b><span style=\"font-weight: 400;\"> A company with large charter capital but poor NWC management can still face serious liquidity risks.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Toi_Uu_Von_Luu_Dong_Rong_Voi_Giai_Phap_Cong_Nghe_Tu_Bizzi\"><\/span><strong>Optimize Net Working Capital With Technology Solutions From Bizzi<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Effective management of Net Working Capital is not only a vital factor but also a competitive advantage for businesses in the digital age. Bizzi, as the leading enterprise cost management platform, provides comprehensive solutions to help businesses optimize each component of NWC.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phuong_Phap_Chung_De_Quan_Ly_Von_Luu_Dong_Hieu_Qua\"><\/span><strong>General Approaches to Effective Working Capital Management<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To maintain stable operations and optimize financial resources, businesses need to apply scientific working capital management methods, balance revenue and expenditure, and take advantage of supporting technology.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accurate analysis of capital needs:<\/b><span style=\"font-weight: 400;\"> Determine the optimal amount of NWC required for business operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Optimize inventory management:<\/b><span style=\"font-weight: 400;\"> Apply methods such as Just-in-Time (JIT) to reduce inventory while maintaining operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Collect receivables quickly:<\/b><span style=\"font-weight: 400;\"> Shorten the customer collection cycle.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Effectively manage accounts payable:<\/b><span style=\"font-weight: 400;\"> Take advantage of payment terms without compromising your supplier relationships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technology application:<\/b><span style=\"font-weight: 400;\"> Use financial management software to automate processes, provide real-time reporting, and make informed decisions.<\/span><\/li>\n<\/ul>\n<p>Before applying the above methods, businesses also need to identify the <a href=\"https:\/\/bizzi.vn\/top-5-sai-lam-trong-quan-ly-von-luu-dong\/\"><strong>common mistakes in working capital management<\/strong><\/a> \u2013 This is an important step to avoid loss of resources and optimize financial efficiency.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_Bizzi_Financing_%E2%80%93_Giai_Phap_Tai_Tro_Von_Luu_Dong_Toan_Dien_Cho_Doanh_Nghiep\"><\/span><strong>\u00a0Bizzi Financing \u2013 Comprehensive Working Capital Financing Solution for Businesses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In a volatile business environment, SMEs often struggle to maintain optimal net working capital (NWC). Temporary shortages can cause businesses to miss out on good import opportunities, delay payments to suppliers, or delay expansion projects. <\/span><a href=\"https:\/\/finance.bizzi.vn\/\"><b>Bizzi Financing<\/b> <\/a><span style=\"font-weight: 400;\">was born as a flexible financial solution, helping businesses easily access capital at reasonable costs and simple procedures, thereby ensuring stable cash flow and increasing competitiveness in the market.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Ket_noi_doanh_nghiep_voi_nguon_von_nhanh_chong_va_minh_bach\"><\/span><b>Connecting businesses with fast and transparent capital<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi Financing acts as a <\/span><b>digital financial platform<\/b><span style=\"font-weight: 400;\"> Directly connect businesses with the system of reputable banks and credit institutions. Through the mechanism of analyzing accounting data and cash flow <\/span><b>in real time<\/b><span style=\"font-weight: 400;\">, Bizzi assesses the financial health of the business and suggests suitable credit limits. This helps businesses save time preparing documents, reduce cumbersome procedures and receive capital. <\/span><b>within 24\u201348 hours<\/b><span style=\"font-weight: 400;\"> without collateral.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Cac_hinh_thuc_tai_tro_Bizzi_Financing_cung_cap\"><\/span><b>Types of financing Bizzi Financing offers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi Financing focuses on two main financing models, which directly impact the components of net working capital:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply Chain Financing (SCF)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Help businesses pay suppliers early based on invoices and documents authenticated by Bizzi.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Purchasing businesses can extend payment terms without affecting their reputation or relationships with suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Suppliers receive money quickly, increase liquidity and continuously rotate capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This is a solution especially suitable for trading and manufacturing enterprises with periodic import needs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/bizzi.vn\/tai-tro-von-la-gi-huong-dan-nguon-von-cho-doanh-nghiep\/\"><b>Capital financing<\/b><\/a><b> Working Capital Financing<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Provide <\/span><b>flexible capital<\/b><span style=\"font-weight: 400;\"> for businesses to pay operating expenses, pay debts, or seize short-term investment opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Quick and simple procedures, no collateral required like traditional bank loans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Credit limits are determined based on financial data. <\/span><b>has been automatically synchronized by Bizzi<\/b><span style=\"font-weight: 400;\"> from the enterprise&#039;s accounting\/ERP system.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Loi_ich_vuot_troi_khi_su_dung_Bizzi_Financing\"><\/span><b>Outstanding benefits when using Bizzi Financing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintain NWC in a healthy state:<\/b><span style=\"font-weight: 400;\"> Helps balance short-term assets and short-term liabilities, ensuring businesses always have enough resources to operate and expand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time cash flow optimization:<\/b><span style=\"font-weight: 400;\"> Integrated with Bizzi Invoice and Bizzi Expense systems, all invoice, debt and expense data is automatically synchronized, providing <\/span><b>Instant cash flow statement<\/b><span style=\"font-weight: 400;\"> for businesses to make informed decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduce financial costs:<\/b><span style=\"font-weight: 400;\"> Competitive interest rates and service fees thanks to the multi-party connection mechanism between banks, investment funds and businesses, ensuring optimal borrowing costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Security &amp; Compliance:<\/b><span style=\"font-weight: 400;\"> All transactions are conducted on a highly secure platform, in compliance with legal regulations and international data protection standards.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999978425\" aria-describedby=\"caption-attachment-999978425\" style=\"width: 1920px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-999978425 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing.jpg\" alt=\"Outstanding benefits when using Bizzi Financing\" width=\"1920\" height=\"1080\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/bizzi-financing-18x10.jpg 18w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption id=\"caption-attachment-999978425\" class=\"wp-caption-text\">Outstanding benefits when using Bizzi Financing<\/figcaption><\/figure>\n<h4><span class=\"ez-toc-section\" id=\"Ung_dung_thuc_te\"><\/span><b>Practical application<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">For example: A manufacturing company has a large order from a customer but lacks capital to buy input materials. Instead of having to borrow from a bank with lengthy procedures, the business can use <\/span><b>Bizzi Financing<\/b><span style=\"font-weight: 400;\"> to pay suppliers immediately through the SCF model. Suppliers receive money early, businesses have more time to rotate cash flow while still maintaining reputation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks to this flexibility, Bizzi Financing helps SMEs <\/span><b>reduce financial pressure<\/b><span style=\"font-weight: 400;\">, optimize net working capital and be ready to seize growth opportunities without being limited by short-term capital issues.<\/span><\/p>\n<blockquote><p><b>Experience Bizzi Financing today:<\/b><a href=\"https:\/\/finance.bizzi.vn\"> <span style=\"font-weight: 400;\">finance.bizzi.vn<\/span><\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Additionally, Bizzi focuses on automating and optimizing core financial processes, which directly impact the components of Net Working Capital:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Xu_Ly_va_Doi_Chieu_Hoa_Don_Dau_Vao_IPA_3-Way_Matching\"><\/span><strong>Input Invoice Processing and Reconciliation (IPA + 3-Way Matching)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi automates the loading, checking and reconciliation of invoices against Purchase Orders (POs) and Goods Receipts (GRs) in real-time. This process reduces errors, saves processing time and ensures the accuracy and timeliness of payables. This directly impacts Current Liabilities (accounts payable), helping businesses optimize cash flow, avoid late payment penalties and maintain good relationships with partners.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Quan_Ly_Chi_Tieu_Doanh_Nghiep_Bizzi_Expense\"><\/span><strong>Business Expense Management (Bizzi Expense)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi Expense allows you to set budgets by department\/project, monitor spending in real time and automate the approval process. This helps businesses keep a tight control on expenses, positively impact cash flow and ensure that the business has enough cash to meet short-term obligations, maintaining a healthy NWC.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Quan_Ly_Cong_No_Accounts_Receivable_Management_%E2%80%93_ARM\"><\/span><strong>Accounts Receivable Management (ARM)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi ARM tracks and reconciles receivables and key metrics such as Days Sales Outstanding (DSO), debt aging reports. Automatic reminders via email and scripted messages help speed up receivables collection, improve liquidity, increase current assets, and increase NWC.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Tich_Hop_He_Thong_ERP\"><\/span><strong>ERP System Integration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bizzi seamlessly integrates with leading ERP systems such as Oracle NetSuite, SAP, Microsoft Dynamics 365 Finance. This integration enables comprehensive financial data synchronization, improving NWC management efficiency through specialized automation of financial processes in existing ERP systems, providing a comprehensive and accurate view of the financial health of the enterprise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To improve the efficiency of invoice management as well as automate the financial and accounting processes of the business. Register to experience Bizzi&#039;s comprehensive solution suite today!<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Link to register for a trial of Bizzi products: <\/span><a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Schedule a demo: <\/span><a href=\"https:\/\/bizzi.vn\/dat-lich-demo\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dat-lich-demo\/<\/span><\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Ket_Luan\"><\/span><span style=\"font-weight: 400;\">Conclude<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>What is net working capital?<\/b><span style=\"font-weight: 400;\"> and why is it important? Net working capital is not just a number on a financial statement but also a vital indicator, reflecting the liquidity and true financial health of a business. Understanding and effectively managing net working capital is the \u201ckey\u201d to helping businesses maintain stable operations, seize growth opportunities and withstand market fluctuations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the context of digital transformation, the application of technology solutions such as Bizzi not only automates complex financial processes but also provides real-time insight into cash flow and net working capital components. As a result, businesses can make quick and accurate financial decisions, optimize net working capital and move towards sustainable development.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Net working capital (VLDR) is a key indicator to assess a business&#039;s short-term solvency - reflecting the\u2026<\/p>","protected":false},"author":57,"featured_media":999978422,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,372],"tags":[],"class_list":["post-999978421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thanh-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999978421"}],"version-history":[{"count":4,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978421\/revisions"}],"predecessor-version":[{"id":999979068,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978421\/revisions\/999979068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978422"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}