Working Capital Financing

Working capital financing refers to the funds available to a business for its day-to-day operations, enabling it to cover short-term liabilities and operational expenses. This type of financing helps ensure that a company can maintain its operations, manage cash flow fluctuations, and meet immediate financial obligations, such as payroll, inventory purchases, and rent. Sources of working capital financing can include bank loans, lines of credit, trade credit, and factoring of accounts receivable.