Methods of Working Capital Financing for Your Business

1. METHODS OF WORKING
CAPITAL FINANCING
FOR YOUR BUSINESS
What Is Working Capital Financing?
Working capital financing is a type of financial backing
that businesses can use to increase their working capital
and fund accounts receivable, inventory, or other assets.
It can also provide liquidity to fund payroll, overhead,
and other day-to-day expenses.
Working Capital = Current Assets – Current Liabilities
Reasons to Use Working Capital Financing
Optimize resource management
Stimulate revenues and manage costs
Seasonal flunctuations
Cover payroll
Supply side discounts
Sustain balance between procurements
and payments
Gain greater flexibility and varying
repayment terms
Surplus capital can provide a cushion
during emergencies
Types of Working Capital Financing
Sources: blog.spenmo.com/working-capital-management | forbes.com/advisor/in/personal-finance/guide-to-working-capital-financing | investopedia.com/
articles/fundamental | kashoo.com/blog/what-is-working-capital-and-why-is-it-important | sukfin.com/knowledge/working-capital-finance
Accounts
Receivable Factoring
Asset-Based
Lending
Payroll
Funding
Trade
Finance
MRR Line
of Credit
Purchase
Order Financing