What is working capital and how does it affect ABA companies?
💵 Working capital sounds complex, but it’s actually quite simple – it’s the amount of money you have available to meet your upcoming operating expenses, such as payroll.
😨 Especially now, acquiring lines of credit and other types of financing are more difficult, and this can quickly lead to a “cash crunch” for your ABA practice. It’s scary and makes running a business incredibly stressful.
🏦 Realistically, accessing working capital in a lender arrangement is very difficult and even unlikely when you don’t have assets like receivables.
When starting your practice, make sure you have a solid understanding of your financial obligations projected through revenue, and that you have considered how you’ll access cash to cover those obligations until the money you earn hits the bank.
Brandon Herscovitch, Ph.D., LABA, BCBA-D
Partners Behavioral Health has industry knowledge and expertise in this area and can help with this. We can help with your clinical and business standards, compliance, and outcomes. We can help you scale an ethical ABA practice you’re proud about.
