{"id":19978,"date":"2023-07-20T18:23:29","date_gmt":"2023-07-20T18:23:29","guid":{"rendered":"https:\/\/liquidcapitalcorp.com\/?p=19978"},"modified":"2026-07-22T14:17:21","modified_gmt":"2026-07-22T14:17:21","slug":"adjusting-your-margins-vs-raising-equity","status":"publish","type":"post","link":"https:\/\/liquidcapitalcorp.com\/es\/blog\/adjusting-your-margins-vs-raising-equity\/","title":{"rendered":"Adjusting your margins vs. raising equity \u2014 which is the better way to boost cash flow?"},"content":{"rendered":"

When your business (or your client\u2019s) needs to increase their working capital, there are options to help accelerate your cash flow.<\/em><\/p>\n

\"Adjusting-margins-vs-raising-equity-scaled\"<\/p>\n

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Keeping profits from eroding is a tough proposition in an era of rising interest rates and persistent inflation. For many business owners, the struggle to keep up with the cost of inputs from energy to supplies can often be overwhelming.\u00a0<\/span><\/p>\n

At the same time, healthy working capital is a must for companies seeking to weather tough economic times or follow through with their growth plans.<\/span><\/p>\n

A <\/span>recent study found<\/span><\/a> that companies expect to continue facing supply chain issues, rising inflation, and the increasing cost of inputs and employee hiring and retention. In fact, nearly half of the surveyed businesses expect their operating expenses to increase, and 30% expect their profitability to decrease.<\/span><\/p>\n

Nearly 30% of businesses planned to increase prices to respond to these challenges. <\/span>\u00a0This number climbed to 50% of hospitality and food services businesses.<\/span><\/p>\n

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Did you know? <\/strong><\/em>According to one survey from late 2022<\/span><\/a>, nearly one-third of companies cited a low cash flow position as a main barrier to achieving their business objectives.<\/span><\/p><\/blockquote>\n

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To respond to this challenge, some organizations decided to develop new markets, increase sales, reduce expenses or seek alternative financing.<\/span><\/p>\n

Indeed, rising above financial challenges in this economy \u2014 and continuing to meet your goals, pay staff and even grow \u2014 means finding a way to free up additional cash flow.<\/span><\/p>\n

For many companies, this means increasing profit margins or seeking financing. Depending on your growth plans and financial situation, finding the right path will look different for each company. <\/span><\/p>\n

\"Adjusting<\/p>\n

Adjusting profit margins to unlock capital<\/h2>\n

Adjusting profit margins is one way businesses can unlock working capital. Often this is done by:<\/span><\/p>\n