Working Capital
Quick Answer
What is Working Capital?
Working capital is the cash a business needs to cover the gap between paying suppliers and getting paid by customers.
Working Capital explained
Most small business failures are working-capital failures, not profitability failures. Overdrafts and invoice finance exist specifically to bridge this gap.
Who it applies to: Every trading business.
Cost: The cost of whatever funding bridges it.
Related terms and guides
Official source: Gov.za
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.
New guides on BizAnswers: