Your Guide on Working Capital and Where to Get It

Jan 29, 2020

Your Guide on Working Capital and Where to Get It

Your business needs positive cash flow to survive. But making more than you spend every month doesn’t give you the full picture of your business health. A business may be cash flow positive but declining overall.

This scenario is where working capital comes into play. If cash flow is a picture of how your business is performing in the short term, then working capital is a snapshot of its long-term health. Increasing your working capital improves your ability to impact the ongoing growth of your business.

Businesses with negative working capital slowly fade away while businesses with positive working capital have the assets they need to grow into a stable business.

So what exactly is working capital?

About the Author

Andrew Mosteller

Andrew Mosteller

Andrew Mosteller is a freelance writer and regular contributor to Lendio News. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew's father, an equity fund manager, taught him the ins and outs of investment financing. Now, Andrew spends his time writing copy for business owners, helping them expand and advertise their unique brands. He's also studying Strategic Communications at the University of Utah. When Andrew's fingers aren't glued to the keyboard, he spends his time reading, podcasting, composing music, and bombing down the ski slopes.

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