Money does not solve all of your problems. It can actually create them.

Business owners come to ECG for Capital but they also come to ECG for Capital Management – even when they already have all of the money they need. Because knowing what to do with the money is as important, if not more important, than simply having access to the money.

What is Capital Management?

A financial strategy aimed at ensuring maximum efficiency in a company’s cash flow.

Areas of Capital Management may be more complex but optimizing cash flow performance and net yield for growth is the core concept.

Balance in Capital Management

Sometimes the financial state of a company can be improved by cutting unnecessary expenses; at other times, earnings can be increased by implementing a small change in one area of business.

Knowing what measures to implement at what times is effective Capital Management.

Short Term Capital Management

This category relates to keeping an eye on short-term immediate factors such as Assets and Liabilities. A company must be able to easily handle its expenses and debts without any risk to the core.

For a goods-based business, these assets include raw materials. Managing a company’s raw materials assets ensures that all necessary raw materials are present to avoid any production stoppages. With the current Supply Chain disruption from exporters overseas this today is extremely relevant.

Companies rarely pay off debts before beginning a new cycle and an entire inventory rarely sells quickly. This is why capital management must balance various streams of information to determine the best course of action. Otherwise, some companies will implode and collapse under their own debt.

There are three (3) basic strategies:


1. Conservative Strategy

This strategy if to finance the working capital with low risk and low profitability. In this approach “apart from eh fixed assets and permanent current assets, a part of temporary working capital is also financed by long-term financing sources.


2. Aggressive Strategy

This strategy will favor profitability over safety. Short-term funds, with higher interest rates, fund the costs of the current cycle and long term funds are utilize only to finance fixed assets and are a part of the permanent working capital.


3. Hedging Strategy

This strategy falls somewhere in between Conservative and Aggressive. You balance both the short term with the long term. This balanced approach is utilized by the vast majority of the leading Capital Management firms and is also the forte of Eagle Capital Group, Inc.

ECG is a team of solution providers that has the requisite experience to learn your business and become your trusted advisor to help you match your Needs with the Solutions.