Construction Glossary
Working Capital
The funds available to cover business expenses. Material financing can increase working capital capacity by covering material costs.
What Is 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
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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