Working Capital
The cash available to cover day-to-day operations — payroll, materials, subcontractors.
Working capital is the cash a business has available to fund its day-to-day operations: payroll, materials, subcontractors, rent, and other recurring costs. Healthy working capital lets you operate smoothly and seize opportunities; a shortage forces you to delay payments, turn down work, or scramble for funding.
Government contractors are especially prone to working-capital squeezes because so much cash is locked up in unpaid receivables under long Net terms. The bigger the contract you win, the more working capital you need to perform it before getting paid.
Financing your receivables — through invoice factoring — is a common way to free up working capital without taking on debt, because it converts earned invoices into cash you can use now.
Frequently asked questions
What is working capital?
The cash available to cover day-to-day operations like payroll, materials, and subcontractors. It's what keeps a business running between paying costs and getting paid.
How can I increase working capital without a loan?
Invoice factoring frees up working capital by advancing cash against receivables you've already earned — no debt added to your balance sheet.
Put financing to work for your contracts
Get up to 90% of your invoice value advanced — no debt, no fixed payment. Apply in minutes.