How they affected SNC’s working capital What general effects are associated with limited access to financing.

The limited access to financing that SNC experienced had a significant impact on their working capital. This is because without sufficient financial resources, it can be difficult for businesses to cover operational costs such as payroll, rent, and other bills necessary for their day-to-day 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.

In general, the effects of limited access to financing tend to be far reaching and include not only reduced liquidity but also potential reputational damage as well as increased reliance on suppliers and partners for cash advances or other forms of support. 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. Overall then, having inadequate access to financing can impede growth opportunities and hinder organizational success which highlights the importance of staying prepared by establishing good credit relationships in advance so that companies are better able position themselves when additional funds become necessary.