2 min read
Definition
A working capital facility is finance provided to cover the timing gap in a company's operating cycle — the period between paying for stock, staff and suppliers and receiving payment from customers. It funds day-to-day trading rather than long-term investment.
In plain terms
It smooths the everyday mismatch: you pay costs now and get paid later, and the facility covers the difference so trading never stalls for want of cash.
Why it matters for your company
It's the tool for working-capital gaps caused by growth, seasonality or slow payers. Size it with the working capital calculator. See working capital management.
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