Working Capital Loan

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DEFINITION of 'Working Capital Loan'

A loan whose purpose is to finance everyday operations of a company.

INVESTOPEDIA EXPLAINS 'Working Capital Loan'

A working capital loan is not used to buy long term assets or investments. Instead it's used to clear up accounts payable, wages, etc.

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RELATED TERMS
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    This ratio indicates whether a company has enough short term ...
  2. Gross Working Capital

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  4. Current Assets

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  5. Current Liabilities

    A company's debts or obligations that are due within one year. ...
  6. Working Capital Turnover

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