Besoin en fonds de roulement (French working capital requirement)
The besoin en fonds de roulement represents the cash timing gap between paying suppliers and collecting from customers. When positive it signals a financing need; when negative, as in large retail, it becomes a resource rather than a burden.
In practice
In a franchise network with strong seasonality — restaurants or garden maintenance — the working capital requirement can double between January and April. A franchisee with insufficient capital risks a cash break before peak season. The franchisor monitors this ratio to trigger seasonal credit lines at the right moment. Shortening customer payment terms or negotiating 60-day supplier terms can sometimes make the figure manageable without injecting additional equity.