Circulating capital refers to the funds a business or organization uses to purchase goods and services, which are then resold to generate revenue. There are a variety of synonyms for circulating capital, including working capital, operational capital, and circulating assets. These terms all refer to the financial resources used to maintain ongoing operations within a company. Additional synonyms for circulating capital include current assets and liquid assets, which refer to the cash and other assets that can be readily converted to cash to fund daily operations. Access to circulating capital is critical for businesses of all sizes to meet their short-term operating costs and maintain financial stability.