The most appropriate pattern of financing working capital is to match the length of the financing terms to the length of the current asset term. Critically discuss the validity of the statement and the difficulty in achieving such an objective.

The statement is valid as working capital financing is the difference between the current assets and current liabilities . The business try to manage the working capital cycle by selling inventory quickly , collecting revenue and paying the creditors slowly to optimize the cash flow . It requires a expertise in working capital financial management to correctly plan the length of current asset and financing term so that they would match as segregation of assets into temporary and permanent is a bit tricky and it is also not feasible to change the financing mix on a real time basis