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Working Capital Calculator
KNOW YOUR NUMBERS. GROW YOUR BUSINESS.
Use ARQ SME BDC's free Working Capital Calculator to estimate the revolving facility your business needs, see your monthly repayments, and understand the annual profit potential of accessing smart capital — all in under two minutes.
What is working capital?
Working Capital
Working capital (sometimes referred to as net working capital) is the money your business needs to be able to operate from day to day.
Day-to-Day Operations
Covers everyday expenses like rent, salaries, and supplies to keep your business running smoothly.
Growth Enabler
Provides the flexibility to invest in new opportunities, expand operations, or scale your business.
Financial Health Signal
Reflects your company’s short-term financial strength and ability to manage cash flow effectively.
Basically, it’s the cash you have left, after you account for money coming in and money going out over any given period. It’s a measure of your financial health and a critical tool for making business decisions and getting approved for loans and other financing.
Why is it important?
Working capital is needed to help a business expand and grow when times are good and cover “rainy day” needs, plus that working capital keeps the lights on when times are rough.
With enough working capital, you can:
Continue paying your team on time
Cover operational costs without panic
Avoid taking on high-interest debt
Stay afloat during slow periods
Managing your working capital successfully is essential if you’re to stay in business.
Many businesses that appear profitable are forced to cease trading because they’re unable to meet their short-term financial obligations when these payments fall due.
An otherwise profitable, high-growth company may run out of cash because its need for working capital continues to increase.
This typically happens when a growing business invests further in inventory and stock, and its accounts receivable (the money it owes for items bought on credit) increase as a result.