Floating capital definition
/What is Floating Capital?
Floating capital is the amount of funding needed by a business to pay for its immediate operational needs. At a general level, floating capital is working capital, which focuses on the current assets of a business, minus its current liabilities. More specifically, floating capital is the net amount of funding needed to pay for a firm's investments in receivables, prepaid expenses, and inventory. It does not include the funds invested in the fixed assets of a business.
Terms Similar to Floating Capital
Floating capital is also known as circulating capital.