2 min read
Definition
A working capital facility provides short-term finance for operating needs — stock, payroll and the gap created by your working capital cycle. It is repaid as the cycle turns cash back in.
In plain terms
It smooths the timing mismatch between money going out and coming in, so a healthy, growing business is not throttled by the wait for customers to pay.
Why it matters for your company
Match the finance to the need: working capital facilities for the trading cycle, term loans for equipment. Size the requirement with the working capital calculator, then explore a flexible facility.
Frequently asked questions
How is a working capital facility different from a term loan?
A working capital facility funds short-term operating needs and is repaid as the trading cycle turns cash back in. A term loan funds a specific long-term purchase and is repaid over a fixed multi-year schedule.
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