Working capital finance is a type of financing provided to businesses to cover their short-term operational needs. This can include funding for inventory, accounts receivable, and day-to-day expenses. The primary goal is to ensure that a company has sufficient cash flow to continue its operations smoothly.
Working capital finance is vital for maintaining business continuity, managing day-to-day operations, and ensuring that a company can meet its immediate financial obligations. It is a crucial aspect of financial management for any business, particularly those with significant inventory and receivables.