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Working Capital

Working capital (also known as net working capital) is a financial term which represents the amount of day-to-day operating liquidity available to a business.

Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

It is calculated as current assets minus current liabilities. A company can be endowed with assets and profitability, but short of liquidity, if these assets cannot readily be converted into cash.

Working Capital Management is nothing but a relationship between a firm's short-term assets and its short-term liabilities.

The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses.

The management of working capital involves managing inventories, accounts receivable and payable and cash. When current assets are less than current liabilities, an entity has a working capital deficiency also called a working capital deficit.


Banks often say "no" just when you need money the most. Advanced Business Capital will handle your loan requests and usually have an approval in days if not hours.

Have you owned your business for at least one year?  If so, working capital is available up to $5,000,000.  

To discuss you current working capital requirements, please call

216-514-7155 in Beachwood, OH
614 - 934 1817 in Cleveland, OH
832-431-3014 in Houston, TX