SNC’s limited access to funding had an impact on its working capital. Without sufficient resources, businesses may find it difficult to cover their operational costs, such as salaries, rent and other expenses necessary for daily operations. Additionally, having limited access to working capital can also hamper a company’s ability to invest in new initiatives or expand into new markets which may negatively affect future profitability.
Limited access to funding can have a wide range of effects, including reduced liquidity and reputational damages. It may also increase the reliance of suppliers or partners on cash advances. Moreover, due to the uncertainty associated with these types of funding arrangements there is risk that any borrowed funds may need to be repaid at higher than expected rates which further exacerbates an organization’s financial burden. In general, inadequate financing is a barrier to growth and can hinder the success of an organization. This highlights how important it is to be prepared in order for companies that need additional funding.