Working Capital
The funds a business uses to cover its day-to-day operating expenses.
Working capital refers to the money a business has available to cover its everyday operating costs – things like payroll, rent, inventory, and utilities. In accounting terms, it’s typically calculated as current assets minus current liabilities.
“Working capital funding” is also used more broadly to describe financing that provides general-purpose cash flow support, as opposed to funding tied to a specific purchase like equipment.
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