Working Capital Financing for business
Before we begin, let us first ask the question: What is working capital?
Working capital is the capital of a business which is used in the day to day operations of the business. It is derived by summing your current assets which may include inventory, receivables, prepayments, cash at hand and cash in the bank. Thereafter, you sum up your current liabilities too. This may include payables, accrued expenses, bank overdrafts, current maturities of long term debts, interest payables and more. Then you subtract the current liabilities from the current assets to get your working capital. [Read more…]