Working capital
Working capital is the difference between a business’s current assets and current liabilities. It represents the resources available to fund day-to-day operations.
$$
\text{Working Capital} = \text{Current Assets} - \text{Current Liabilities}
$$
Working capital is essential for maintaining liquidity, the ability to meet short-term financial obligations.
Without adequate working capital, businesses may struggle to pay suppliers, employees, or other critical expenses, leading to operational disruptions or even insolvency.
Credit Worthiness
Refers to an entity's ability to repay its debts, based on its financial health and reliability. It's often assessed by credit ratings, which consider factors like income, debt levels, past borrowing history, and the stability of cash flows.
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Paywall
(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.
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