// definition
BFR
Operating working capital requirement
Short definition
Funding tied up in operating inventories and receivables after deducting trade payables and other operating funding. Payment timing and inventory turnover can create cash needs even in a profitable business. BFR is the French abbreviation for this operating funding requirement.
risk atlas
Knowledge map
Intuition
Restarting production can absorb cash before the corresponding sales bring receipts.
Related analyses
- JLR: when the factory stopsInventory, trade payables and funding needs during the recovery.
- Ghana’s cocoa crisis: who finances the wait?Crop purchases, inventory and the timing of receipts.
Primary sources
- Bpifrance Création, operating working capital requirementInventories, receivables, trade payables and operating cash timing. French source.