The essence of working capital management is to minimise working capital via prolonging payables and shortening receivables.

The essence of working capital management is indeed to minimize the amount of capital that is tied up in operations. This is achieved by managing the company's current assets and current liabilities effectively. Here's a step-by-step explanation:

1. Understanding Working Capital: Working capital is the difference between a company's current assets (like cash, accounts receivable, and inventory) and its current liabilities (like accounts payable). It's the money that a company has readily available to cover day-to-day operations.

2. Prolonging Payables: This means extending the time it takes to pay off current liabilities. By negotiating longer payment terms with suppliers, a company can hold onto its cash longer. This improves the company's cash flow and increases the amount of working capital.

3. Shortening Receivables: On the other side of the equation, a company wants to collect payments from its customers as quickly as possible. This can be achieved by offering discounts for early payment, for example. The faster a company collects its accounts receivable, the more its working capital increases.

4. Balancing Act: While the goal is to minimize working capital, a company must be careful not to stretch its payables too thin or pressure its customers too much. If a company takes too long to pay its bills, suppliers may stop doing business with it. Similarly, if a company is too aggressive in collecting payments, it may alienate its customers.

5. The Goal: The ultimate goal of working capital management is to maintain a balance where the company has enough cash to cover its short-term expenses, while also investing in its growth. This balance will vary from company to company, depending on factors like the nature of its industry and its specific business model.