What is a Working Capital Loan?
Working capital is a key financial indicator that measures the short-term liquidity and performance of a company. It indicates the net operating cash available to a company and is calculated by subtracting current liabilities from current assets, usually on a balance sheet. Working capital can also be thought of as the amount of money needed to keep the business running throughout the year.
A working capital loan is, therefore, a loan that is taken to finance a company's everyday operations. These loans are used to provide the working capital that covers a company's daily operational needs. It can include costs such as payroll, rent, and short-term assets such as accounts receivable and inventory.
Explore our fast, easy and straightforward options to help your business grow.