What is working capital? How to work it out and why it matters
By SendPay Business · · 2 min read
- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Working capital is the money a business has available to run day to day. It's what's left when you take the bills due within a year away from the cash and other assets you expect to turn into cash within a year.
The simple sum
0 of 3 done
Tick each step as you do it, so you can see what is left.
What the number tells you
A positive figure means you should be able to cover your short-term bills. A negative figure means you owe more in the next year than you expect to have, which can mean borrowing or chasing payments harder.
Try it
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Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
Ways to improve it
Get paid faster by invoicing promptly and offering easy ways to pay, hold less stock, agree longer terms with suppliers where you can, and keep a cash buffer for tax bills.
Where SendPay fits
SendPay platforms let your customers send invoices and payment links and take payments into GBP, EUR and USD accounts, under your own brand and powered by licensed partners.
How it works
Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
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- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How do I work out my working capital?
Enter your cash, money customers owe, stock and the bills and loans due within a year, and the free calculator shows your working capital, current ratio and quick ratio.
Working capital calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.