2 min read
Definition
The working-capital cycle = stock days + debtor days − creditor days. It measures how long your cash is tied up in the operating loop before it returns. A longer cycle ties up more cash.
In plain terms
It is the round trip your money makes: cash out for stock, stock into sales, waiting to be paid, cash back. The longer that loop, the more funding you need to keep going.
Why it matters for your company
Shortening the cycle frees cash and reduces the need to borrow. See working capital explained.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.