Need more resources to keep your business afloat? Consider using working capital; this is one way to keep your company out of debt, without conventional loans and lending processes. Working capital may be the best way to maintain and regulate what you spend- and to cut corners and curb costs over time.  

Here is what you should know:  

Working Capital 

Working capital typically comes from your daily operations, or outside funding sources. Capital is essential to operation- without it, you are unable to acquire the tools and supplies needed to keep your company going. These are short-term needs that come up day-to-day, so many cover them with company credit cards or a line of credit, which can have high-interest rates.  

Building Working Capital  

The simplest way to explain how to build your working capital is to take in more than you shell out. That is, spend less and cut corners if you can for cash liquidity left over. If you budget properly and are paid promptly for your goods or services, you should be able to cover expenses and build capital over time with diligence.  

Here are some tips for managing your working capital: 

• Manage your inventory and goods. Don’t let your revenues sit on a shelf for long. Too much inventory is as bad as too little; find the right middle ground for your business.  

• Incentivize your patrons to pay promptly. Offer alternative payment terms to suit a wider range of customer needs.   

• Be shrewd and realistic when budgeting and planning for the expenses associated with doing business. Talk to a financial professional if need be.    

Do you have or operate a small business? How do you handle unanticipated expenses when they arise? Learn more about working capital- and talk to the lenders at WCK Financial to review your financing options.