Securing financing for working capital

What is working capital and what is it for?

Working capital is the money a company needs to meet its daily financial obligations. For example, paying bills, wages, and stocking costs. In economic terms, working capital is the difference between current assets (such as stock, accounts receivable, and cash) and current liabilities (such as accounts payable and other debts). Current assets include inventories, accounts receivable, and cash and cash equivalents. Current liabilities include accounts payable and other short-term debts.

What do you not use working capital for?

Working capital is not intended for investments in business assets such as inventory, cars, computers, or machinery. Nor is it intended for long-term projects such as product development or innovation. Working capital is intended for day-to-day business operations.

How do you get enough working capital?

First, look for financial room within your own business. Do not keep too much stock, but only order what is necessary. This will prevent money from being tied up in unsold products for too long. Send a clear invoice to your customer soon after delivery. With active credit management, you can try to get paid faster. Use your suppliers' payment terms. Pay at the right time, not too early and not too late. 

Financing working capital 

Can you not find any financial scope within your business? Then look into external financing options for your working capital. 

Use the Financing Finder

Want to know which form of financing best suits your working capital needs? Then use the Financing Finder. Answer the questions and see the results.

Help and advice with business financing

The Financing Guide shows you the way in the world of financing. Do you still have questions after reading the information? Call the helpline on 088 585 11 11. Or contact an Approved SME Financing Adviser in your area (in Dutch) for support and advice.