Working capital management is very significant in the field of financial management. It plays a leading role in promoting industrial growth. It is highly concerned with short term financial decisions. Generally any organization involves two types of capital. Fixed capital and variable capital: Fixed capital is just like physical body of industrial organization and variable capital or working capital is like circulating blood in physical body of any organization. Spontaneous source of finance is one of the most important features in business cycle. It reduces the amount of negotiable financing. The word spontaneous indicates that the credit is easily available source of working capital to the business for normal course of business activities. When we sell our products, generally we demand cash, or cash before delivery, but it is not possible for us to sell on cash only. In most cases, we allow some delay in payment, as per accounting concept, these delays create receivables, and these receivables called credit.

KEYWORDS: Spontaneous, Circulating Blood, Negotiable, Anathema, Variable Capital.