Working capital is the money available to keep your business running day to day – the difference between your short-term assets (like cash and stock) and your short-term liabilities (like unpaid invoices). And it’s what determines whether you can act when an opportunity arrives.
Because when a supplier offers a bulk discount that’s gone in 48 hours, or a new market opens up and you need to pay new suppliers upfront, you need the cash to take it. Whether you can depends on your working capital position.
The challenge is that strong sales don’t always mean available cash. Money goes out to suppliers, staff, and VAT before it comes back in from customers. That timing gap – sometimes weeks or even months – is where otherwise well-run businesses find themselves having to pass on opportunities they know are worth taking.
This article explains what working capital is, how to measure it, and what you can do to make sure it never becomes the thing standing between you and your next move.
Working capital is the money available to keep your business running day to day – the difference between your short-term assets (like cash and stock) and your short-term liabilities (like unpaid invoices). And it’s what determines whether you can act when an opportunity arrives.
Because when a supplier offers a bulk discount that’s gone in 48 hours, or a new market opens up and you need to pay new suppliers upfront, you need the cash to take it. Whether you can depends on your working capital position.
The challenge is that strong sales don’t always mean available cash. Money goes out to suppliers, staff, and VAT before it comes back in from customers. That timing gap – sometimes weeks or even months – is where otherwise well-run businesses find themselves having to pass on opportunities they know are worth taking.
This article explains what working capital is, how to measure it, and what you can do to make sure it never becomes the thing standing between you and your next move.
Working capital is the money available to keep your business running day to day – the difference between your short-term assets (like cash and stock) and your short-term liabilities (like unpaid invoices). And it’s what determines whether you can act when an opportunity arrives.
Because when a supplier offers a bulk discount that’s gone in 48 hours, or a new market opens up and you need to pay new suppliers upfront, you need the cash to take it. Whether you can depends on your working capital position.
The challenge is that strong sales don’t always mean available cash. Money goes out to suppliers, staff, and VAT before it comes back in from customers. That timing gap – sometimes weeks or even months – is where otherwise well-run businesses find themselves having to pass on opportunities they know are worth taking.
This article explains what working capital is, how to measure it, and what you can do to make sure it never becomes the thing standing between you and your next move.
Working capital is the money available to keep your business running day to day – the difference between your short-term assets (like cash and stock) and your short-term liabilities (like unpaid invoices). And it’s what determines whether you can act when an opportunity arrives.
Because when a supplier offers a bulk discount that’s gone in 48 hours, or a new market opens up and you need to pay new suppliers upfront, you need the cash to take it. Whether you can depends on your working capital position.
The challenge is that strong sales don’t always mean available cash. Money goes out to suppliers, staff, and VAT before it comes back in from customers. That timing gap – sometimes weeks or even months – is where otherwise well-run businesses find themselves having to pass on opportunities they know are worth taking.
This article explains what working capital is, how to measure it, and what you can do to make sure it never becomes the thing standing between you and your next move.
