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Working Capital Loan

 
Investment Dictionary: Working Capital Loan

A loan whose purpose is to finance everyday operations of a company.

Investopedia Says:
A working capital loan is not used to buy long term assets or investments. Instead it's used to clear up accounts payable, wages, etc.

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A company's efficiency, financial strength and cash flow health shows in its management of working capital. Working Capital Works


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Banking Dictionary: Working Capital Loan
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Short-term business loan financing the purchase of income-generating assets, principally inventory. Working capital loans are generally written with lending terms requiring full payment within a specified period, such as 60 days or 90 days from the date the funds are advanced.

 
 

 

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