Trade Working Capital is the capital a business requires to finance its day-to-day trading activities. It is used to purchase goods and services, pay creditors, and managers salaries. This type of working capital involves borrowing money from banks or other financial institutions in order to take advantage of discounts offered by suppliers for early payment, and to ensure the necessary liquidity to operate on a daily basis. Trade Working Capital is an essential tool that helps businesses remain competitive and maintain their liquidity position in the market.