Part of the circulating asset financed by long-term resources that corresponds to the difference between the circulating asset and the circulating liability. Generally, and depending on the sector of activity, having a positive working capital fund is a guarantee for the stability of the company. It serves to ensure normal payment to suppliers and creditors, by converting customer balances and inventories into cash during a production cycle. Typically, fixed assets must be financed with permanent resources, while circulating assets are financed with short-term liabilities.
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