Operating Capital
Operating Capital refers to funds used to support the day-to-day operations of a startup, covering expenses such as rent, payroll, and utilities.
Benefits
Operating capital ensures a business can run smoothly by covering essential expenses, maintaining liquidity, and supporting daily operations.
Frequently Asked Questions
What is the meaning of operating capital?
Operating capital is the money a business uses to fund its daily operations, including expenses like rent, salaries, and utilities.
What do you mean by operating working capital?
Operating working capital is the capital required to cover a company`s short-term operational needs, such as inventory, accounts receivable, and accounts payable.
Which capital is used for day-to-day operations?
The capital used for day-to-day operations is called operating capital, which funds regular business expenses and activities.
Key Takeaway
Operating Capital is essential for funding the day-to-day activities of a startup, ensuring it can meet short-term expenses and maintain smooth operations.