Guide to Trade Working Capital

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What Is Trade Working Capital?
How Trade Working Capital Works
Inventories These are unsold products waiting to be sold. Accounts receivable This is the balance of money due to your company for goods or services delivered or used but not yet paid for by customers.
Accounts payable This is the amount your company owes its vendors for inventory-related goods, such as business supplies or materials.
Trade Working Capital vs Working Capital
Trade Working Capital Calculation Example
What Trade Working Capital Indicates and Why It Matters
The Takeaway
3 Small Business Loan Tips
Online lenders generally offer fast application reviews and quick access to cash. Conveniently, you can find recommended small business loans by using Lantern by SoFi. If you are launching a new business or your business is young, lenders will consider your personal credit score. Eventually, though, you’ll want to establish your business credit. If you need to borrow money to cover seasonal cash flow fluctuations, a business line of credit, rather than a term loan, provides the flexibility you likely need.
Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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