Finance Working Capital is the money a business invests in current assets and liabilities for everyday operations. It is the fluidity of the business and its ability to quickly adapt to changing circumstances. By properly managing working capital, businesses can successfully reinvest their profits for future growth and build financial security. Investing in working capital increases a business’ flexibility and allows it to react more quickly to market changes. Additionally, it enables a business to better manage short-term expenses, increase customer satisfaction, and generate income.