Contracting is capital intensive, You have to pay for lots of things before you get any payment for services rendered. You hope to earn more than your outlay initially and for the whole of the freelance arrangement.
Things to pay for include transport, accommodation, food etc.
As you will also realise rapidly growing insurance companies like rapidly growing babies require more capital and thus more expenditure than less rapidly growing ones or in the case of companies contracting ones.
Thus a source of capital (eg money/resource) can be the use of an overdraft, or loan no matter how temporary. Another source could be any equipment or assets which you use but not purchased for the arrangement (eg clothes - not purchased for the business but obvioulsy need to be worn!)
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