What is Working Capital

What is Working Capital image

Terminology in business can sometimes be over-complicated even for the seasoned business owner.  For instance when we are asked ‘what is working capital ?’ we often break it down into a simple formula.

Remember that in the case of a merchant cash advance working capital is not a critical factor in the decision process however we’re here to help and explain further.

What is Working Capital = Current Assets – Current Liabilities

If a company’s  assets do not exceed its current liabilities then it may have difficulty paying back creditors in the short term. However every business aim is for the company’s assets to exceed its liabilities. i.e. plenty of liquidity to cover the business obligations.

If you need a loan or you are thinking about raising finance through an asset lender or approaching a high street bank just hold that thought and keep reading.

The Merchant cash advance UK  product could be just what you need.  You see, with this innovative loan product you are able to borrow against your businesses customer card transactions and repay a small, comfortable percentage back on your future card sales, meaning when you have a slow month you only pay back on those sales.

If you have a good month then you pay back the loan sooner – always within a comfortable trading percentage for your businesses cash flow.  And remember that your cash sales are not taken into consideration.

So if you are looking for an extra push over the next few months and you need anything between £2,500 and £300,000 then pop through your business details to our team via our online form today.

You will be amazed at how helpful we are, in fact to reassure you we fund over 95% of all loan applications that meet this simple criteria.

Apply here for a  merchant cash advance


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