Working Capital Facility or loan or overdraft is to finance everyday functioning of the company. These are taken to cover a company's short-term operational needs rather than accounting for long-term assets or investments. These needs can include costs such as payroll, rent, debt and various other day to day expenses and payments. These are borrowed by a company when there is a shortage of adequate cash or asset liquidity required for the smooth functioning of a company. For example, many companies have seasonal income/revenues in a year and these working capital loans comes handy in such situation.