What is working capital?
Working capital is the money a business needs to keep operating between paying its costs and receiving its revenue — the cushion that covers the gap between money out and money in.
Why the gap exists
You pay rent, salaries and suppliers on fixed dates; customers pay when their invoices come due — often 30 or 60 days after the work. Working capital finances that interval. When it runs short, healthy businesses take expensive loans to cover routine timing.
Protecting working capital
The levers are visibility and timing: collect receivables on time, negotiate payable dates deliberately, and see the gap coming weeks ahead. That visibility is exactly what a live cash flow view in an ERP like ERP Mobi provides.