Working capital is one of the important measurements of the financial position. The words of H. G. Guthmann clearly explain the importance of working capital. “Working Capital is the life-blood and nerve centre of the business.” In the words of Walker, “A firm’s profitability is determined in part by the way its working capital is managed.” The object of working capital management is to manage firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. If the firm cannot maintain a satisfactory level of working capital, it is likely to become insolvent and may even be forced into bankruptcy. Thus, need for working capital to run day-to-day business activities smoothly can’t be overemphasized. If the financial manager’s planned cash outflow exceeds cash inflow, and the cash balance is insufficient to absorb the deficiency it will be necessary to obtain funds from outside the business. Just as a firm bids for labour in the labour market and for assets in the market place, so does it seek money in one or another of various markets for money. They are among the most competitive of all our markets because anyone who has money to invest may enter and bargain with those who are seeking funds. Within these markets, funds are available from many sources, under different types of agreements and for varying periods of time. In this paper Financing of Working Capital is being discussed.