Working capital is the money available to run day-to-day operations: current assets minus current liabilities. Positive working capital means you can cover short-term obligations comfortably.
Why cash-flow gaps happen
- Customers pay on 30–90 day terms while bills are due now
- Seasonal businesses have uneven revenue
- A large order requires materials and labor up front
- Rapid growth consumes cash faster than it comes in
Ways to strengthen working capital
- Invoice promptly and follow up on overdue accounts
- Negotiate longer payment terms with suppliers
- Keep inventory lean
- Use working capital financing to bridge timing gaps
When financing makes sense
Working capital financing is most effective when it funds activity that generates revenue — fulfilling orders, stocking for a busy season, or bridging receivables. Learn more about our working capital loans.
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