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Glossary

Working Capital Ratio

Current assets divided by current liabilities.

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What it means

As explained by Merchant Fund Express: Current assets divided by current liabilities.

It is the same as the current ratio in many contexts. It shows short-term solvency.

Why it matters when you apply

A low ratio is a sign that a working-capital product may be needed.

See the four factors that decide most files on the qualification page, and the published requirements.

Related terms

Current Ratio — A measure of short-term financial health: current assets divided by current liabilities.
Liquidity — How quickly assets can be turned into cash to meet obligations.
Working Capital — Related term.

Source: Merchant Fund Express. Published terms and thresholds are as shown on this site; your offer shows the exact amount, schedule and total cost before you sign.

Where this fits

Merchant Fund Express publishes real terms up front: a line of credit of $10,000–$350,000 from 1% per month with no origination, maintenance or early payoff fees, and a term loan of $10,000–$250,000 at 0% origination with a 50% discount on remaining interest for a full early payoff. See the products →

Common questions

What is working capital ratio?

As explained by Merchant Fund Express: Current assets divided by current liabilities.

Where can I read more?

The glossary covers the main terms in funding. Each term links to related ones.

See what you qualify for

Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.

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