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What is meant by ‘Financing of Temporary or Variable or Short-term Working Capital’?
Firstly, what is working capital? Well, in the simplest terms, it is the available cash in a company for spending on anything, maybe a project or for internal requirements! For example, if you have five hundred dollars in hand on your way to a market and you have to save a minimum of hundred dollars for travelling expenses, then for you, working or operating capital will be four hundred dollars! For companies, definitely it is much more an uphill task to decide upon working capitals! Now, the Working Capital can be short term, temporary or variable! This is quite obvious with changing parameters & transactions with the market that happen every day!
What are factors on which it depends?
- Changing market conditions with changes in technology & mindsets
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