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The four factor that affects the working capital requirements of a company are as follows.
Nature of Business- The primary nature of business influences the amount of nature of the business required by it. For instance, an organisation involved in trading business require a small amount of working capital as compare to the bigger organisation.
The scale of Operation- A large organisation requires large inventory as a working capital than the small company.
Business Cycle- When there is a growth in the economy, the production of a company increases and more working capital is required, as compared to when there is a crisis in the economy.
Seasonal Factors- In the zenith season, the demand will be high so the working capital increases as compared to the offseason.