What do you understand by working capital cycle?

[Good-Person]

Capital is one of the main aspects of finance. When we talk about business and finance, we always consider the importance of capital. Working capital cycle is important as it is a process where the capital plays a big role. It involves total assets and resources of a company that allows the company to earn profits and deal with liabilities. So, does your business also goes through the same process?

 

[Heatman]

There's a business starting capital which is the money needed to set up the business and start bringing sales to it. Without this starting capital, there's no way it's going to possible to begin the business. Then, working capital is the money needed for the day to day running of the business activities.

 

[Good-Person]

There's a business starting capital which is the money needed to set up the business and start bringing sales to it. Without this starting capital, there's no way it's going to possible to begin the business. Then, working capital is the money needed for the day to day running of the business activities.

Working capital has been defined in many different ways. Some people claim that there are many different kinds of working capital and it involves selling your assets and managing your liabilities by utilising resources such as capital. This allows the business to manage its liabilities and assets in a proper manner.