Working Capital Needs

Access to Capital
As a business owner its important to plan for expenses but sometimes you may have unexpected needs. Working capital is used to pay short-term obligations. To calculate your working capital you will need: 
  • annual growth - the percent you expect to grow over the next year 
  • target current ratio - this is your current assets dividing by current liabilities
  • total current assets - any cash or asset that can be quickly obtained and used (i.e. prepaid expenses, accounts receivable, etc.) 
  • total current liabilities - any liabilities or expenses in the immediate future such as wages, taxes, and accounts payable
If you are looking for lending options to cover operational expenses or to accomplish long-term goals contact a local TowneBank banker. 

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Working Capital Needs Calculator

Your working capital is used to pay short-term obligations such as your accounts payable and buying inventory. If your working capital dips too low, you risk running out of cash. Even very profitable businesses can run into trouble if they lose the ability to meet their short-term obligations. The calculator assists you in determining working capital needs for the next year.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


Only deposit products are FDIC insured.

The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.

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