The money available to cover your day-to-day business operations — current assets minus current liabilities.
Working capital is the financial fuel your business runs on daily. It's what you have left after subtracting what you owe in the short term from what you own in the short term. Positive working capital means you can pay your bills. Negative means you're in trouble even if you're profitable.
Working Capital = Current Assets − Current LiabilitiesA business can be profitable on paper but cash-strapped in practice — this is a working capital problem. If your customers take 60 days to pay but your suppliers want payment in 30 days, your working capital is under strain regardless of profit.
Upload your financial data. Ask "What is my working capital position?" AskBiz calculates the current ratio, identifies the components dragging it down, and recommends whether to focus on collecting receivables faster, negotiating supplier terms, or reducing inventory.
Export a CSV or Excel file from your POS, accounting software, or spreadsheet and upload it to AskBiz.
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A wholesaler finds their working capital has declined 40% over 6 months. AskBiz identifies the cause: trade receivables have grown from 28 to 52 days average collection time. It recommends specific accounts to chase and calculates that recovering £22,000 in overdue invoices would restore healthy working capital.
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A current ratio (current assets ÷ current liabilities) of 1.5 to 2.0 is generally considered healthy for most businesses. Below 1.0 means you can't cover short-term obligations — a serious red flag.