What is meant by working capital?

What is meant by working capital?

David Weller (Co -author Teach Yourself: Setting Up A Small Business) gives expert video advice on: What is meant by cash flow?; What are overheads?; What is the difference between fixed assets and current assets? and more...

Working capital is the value of your current assists minus your current liabilities. Now, a business should never be short of working capital, which should be sufficient to finance the running the business. The lack of working capital is a very common reason for business failure.