Working Capital Injection
A cash infusion into a business, whether from financing, owner contribution, or another source, specifically meant to cover operating needs rather than a capital purchase.
Unlike financing tied to a specific asset purchase, a working capital injection is meant to cover general operating needs, payroll, inventory, rent, during a cash flow gap or ahead of anticipated growth.
Working capital loans, lines of credit, and merchant cash advances are all common sources of a working capital injection, chosen based on how quickly funds are needed and how the business prefers to structure repayment.
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