Olam Financial Services
Business Finance
Understanding Working Capital
What working capital really measures, and how to tell whether your business has enough of it.
The basic definition
Working capital is the difference between your current assets and current liabilities — essentially, what is available to fund day-to-day operations.
Signs you may be short
Delayed supplier payments, difficulty meeting payroll, or turning down orders due to lack of stock are common signs of a working capital shortfall.
Closing the gap responsibly
Working capital financing is designed to bridge these gaps without committing you to long-term debt beyond what the gap requires.