toimintarahoitus

Toimintarahoitus, which translates to operating financing or working capital financing in English, refers to the short-term funding needed to cover a company's day-to-day operational expenses. This includes costs like raw material purchases, inventory, payroll, rent, utilities, and marketing. Unlike long-term financing which is used for capital expenditures like machinery or buildings, toimintarahoitus is essential for maintaining the liquidity and smooth functioning of a business on a continuous basis.

Businesses typically require toimintarahoitus because of the inherent timing differences between when expenses are incurred and when revenue is received. For example, a company might have to pay its suppliers before it receives payment from its customers. This gap in cash flow can create a need for external funding. Common sources of toimintarahoitus include bank overdrafts, lines of credit, short-term loans, and trade credit from suppliers. Effective management of toimintarahoitus is crucial for preventing cash flow shortages, ensuring operational continuity, and avoiding potential financial distress. It allows businesses to meet their immediate obligations and capitalize on opportunities as they arise.