Working capital

Working capital is a business’s current assets minus its current liabilities — the money actually available to run day-to-day operations once near-term bills are covered.

How it works

• Current assets include cash, accounts receivable and inventory; current liabilities include accounts payable and short-term debt.
• Positive working capital means you can cover what’s due; negative means you’re relying on money that hasn’t arrived.
• It’s a snapshot, so it moves every time an invoice is issued, paid, or comes due.

The catch: working capital can look healthy on paper while the cash is trapped in unpaid invoices.

Why it matters

Profit and working capital aren’t the same thing — a growing business can be profitable and still be unable to make payroll because its cash is stuck in receivables. Managing the gap between when money comes in and goes out is what keeps the doors open.

How Fynex does it

Fynex’s Working Capital tracks your cash floor, catches early-payment discounts and avoids late fees so money stays in the business. Faster collections free up cash without borrowing against it — a cleaner route than invoice factoring.