You’ve probably noticed the phrase working capital financing all over our website. It is, after all, a core part of our service. But what is working capital, and what does it have to do with running a small business? Here’s a basic definition:

Working Capital Defined

Working capital refers to liquid assets a company has with which to operate. Mathematically, it is your current assets minus your current liabilities. But it’s easier to understand (and explain) as the cash you currently have on hand to cover expenses.

Inventories and invoices are a type of asset, but they differ from working capital in that they are not readily liquid / spendable.

Our services are built around working capital. Through various means, we provide companies with the cash flow they need to operate their businesses, so our primary service is referred to as working capital financing. We do this through a variety of accounts receivable and inventory financing services.

Questions About Working Capital Finance?

If you have questions about any of the financing services we offer, or about working capital in general, please contact a Far West representative.

This entry was posted on Monday, August 6th, 2007 and is filed under Working Capital 101.