Determining the amount of working capital your business requires is a straightforward process. Typically, working capital is calculated as the difference between your current assets and current liabilities.

However, this number can fluctuate monthly as bills are paid and new expenses arise. A more accurate way to assess your working capital needs is to consider your operating cycle—the time it takes to produce and sell your product. For example, businesses like restaurants have short operating cycles, while industries such as clothing manufacturing may have more seasonal cycles. It's essential to evaluate your cash flow during each operating cycle to determine the working capital required.

Unexpected challenges can also arise, from kitchen fires to equipment breakdowns and taxes. In these cases, we offer fast financial solutions, with funds available for deposit into your account within 24 hours.