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English definition of “working capital”

working capital

noun [U]
 
 
(also circulating capital, also operating capital)
ACCOUNTING, FINANCE, WORKPLACE the money that a company needs to operate and produce its goods or provide its services, for example to make payments to employees, suppliers, etc. before it has been paid by customers: Companies need large amounts of working capital in order to operate and grow. The joint venture will cost the group just $200,000 in working capital. a reduction/shortfall/increase in working capitalprovide/raise working capital An additional £820m revolving credit facility will provide working capital.
(Definition of working capital from the Cambridge Business English Dictionary © Cambridge University Press)
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