Unlike "Fixed Working Capital" (the permanent funds needed to run day-to-day operations year-round), seasonal working capital is . It bridges the gap between the time a business must spend money to build inventory and the time it actually collects revenue from sales.
She had to go back to the well.
Now, April was two weeks away. She needed $150,000 by Friday.
During the "Build-Up" phase, the company needs an injection of cash—this is seasonal working capital.
is the temporary increase in working capital required by a business during specific times of the year to support heightened operational activity.
: It is the difference between peak current assets (inventory and receivables) and regular current assets. The Formula : Key Drivers :
