Glossary entry

Italian term or phrase:

sostenere il circolante

English translation:

to fund working capital

Added to glossary by James (Jim) Davis
May 6 18:10
12 days ago
19 viewers *
Italian term

sostenere il circolante

Italian to English Bus/Financial Finance (general) protocollo d'intesa
Here are two examples of where it appears in the text, in two different forms (see between asterisks below). The meaning is the same. Could I say "to pad the assets"? Does that make sense? Or am I a little bit off?

Example 1: La Società vanta una rilevante esposizione finanziaria verso le Banche che, da un lato, la hanno supportata per il tramite di linee di finanziamento di breve termine, **a sostegno del circolante**, e dall’altro le hanno erogato finanziamenti a medio e lungo termine, in parte garantiti da XXXX e XXX;

Example 2: Successivamente YYYYYYYY comunicava alle Banche che, a valle della sospensione degli affidamenti comunicata da alcune di esse, la Società aveva continuato ad operare regolarmente, **sostenendo il circolante** grazie al supporto di nuovi soggetti finanziatori e che, nel frattempo, assecondando le richieste in tal senso ricevute dalle Banche, aveva predisposto un budget economico e finanziario relativo all’esercizio 202X (di seguito il Budget 202X) che sarebbe stato oggetto di illustrazione ed approfondimento nel corso di un successivo incontro interbancario;
Change log

May 8, 2024 13:08: James (Jim) Davis Created KOG entry

Proposed translations

+2
2 hrs
Selected

to fund working capital

There will be other ways to say it. This is "capitale cirolante" or "working capital". Another name for it is "current assets" "attività correnti". Current means any assets with a life of less that twelve months so this is inventory cash and current bank account deposits and similar. So typical funding for this is bank overdraft facilities. Obviously support for working capital would be funds, cash. Net working capital is current assets minus current liabilities.

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Note added at 2 ore (2024-05-06 20:29:53 GMT)
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Drawings on an overdraft facility would be shown in the balance sheet under current liabilities.
Peer comment(s):

agree philgoddard
51 mins
Thanks Phil
agree Dominic Currie
11 hrs
Thanks Dominic
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4 KudoZ points awarded for this answer. Comment: "Eek! A far cry from what I had postulated, but makes perfect sense. Thanks for the thorough explanation."
13 hrs

maintain the level of current assets

The first discussion entry web ref. refers to *capitale* circolante - surely ambiguous for both il capitale and il attivo.

'Pad the current assets' is an inspired idea, though - see the first example sentence - denotes a cosmetic operation: no US or UK celebrities' names mentioned.

My recollection of US corporate BrE / Oz company & banking accounts suggests this is a maintenance exercise.
Example sentence:

Sometimes, businesses pad their current assets with borrowed money to appear more attractive to investors.

A firm maintains current assets because they are needed to support the operational activities which result in sales. They volume of sales and the size of the working capital are directly related to each other.

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