Working Capital
Payroll does not care that your biggest customer pays Net-45. Working capital is about keeping operations alive while cash timing catches up with the business.
Keep the Machine Moving.
Working capital financing covers the timing gap between operating expenses and incoming cash. It is a use of funds that can be served by a line of credit, term loan or receivables financing.
Where it can fit
- Operators with a defined gap between paying suppliers and collecting revenue
- Seasonal businesses with a credible cash recovery cycle
Common uses
What shapes the file.
- Cash conversion cycle
- Deposits after existing debt payments
- Whether the gap is temporary or recurring
General product guidance. A provider’s actual criteria and review determine eligibility.
Documents to prepare
- Recent business bank statements
- Current profit and loss statement and balance sheet
- Existing debt schedule
Know the tradeoffs.
- Frequent payments can deepen a cash shortage.
- Borrowing cannot repair persistently negative operating margins.
Put the numbers to work.
Capital route finder
Start with the purpose. Explore relevant capital lanes.
Explore ON THIS SITEFunding readiness
Identify strengths, constraints and the next document to prepare.
Explore DISTILLED / TOOLSLoan payment tools
Explore payment, term and total-cost scenarios in the Tools directory.
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Capital is one part
of the plan.
A question worth asking.
Is working capital a specific kind of loan?
No. It describes the operating need. Compare the actual credit line, term loan or receivables structure being offered.
Make your next move an informed one.
Start with your profile. Understand the tradeoffs. Prepare a clear request.