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Glossary
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Working Capital

Working Capital

What is Working Capital?

The funds available to cover business expenses. Material financing can increase working capital capacity by covering material costs.

More In-Depth Definition of Working Capital

Working Capital is the available financial resources that cover the day-to-day operational expenses of a construction business. Material financing can enhance working capital by allowing contractors to defer costs for materials, improving cash flow management.

Example of Working Capital

A contractor may use a Pay App Advance or Material Fiinancing to increase their working capital capacity, allowing them to purchase necessary materials and pay labor costs even before receiving full payment for a completed project.

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