Title: How a Working Capital Loan Can Work for Your Business
Headings: How a Working Capital Loan Can Work for Your Business
How a Working Capital Loan Can Work for Your Business
What is Working Capital?
Working Capital Loans vs. Traditional Business Loans
The Importance of Working Capital
How Working Capital Is Valued for Accounting
How Working Capital Is Used in a Business
How You Can Get a Working Capital Loan for a Small Business
Available Programs for Working Capital Loans

Content: A good ratio would be 2:1; twice as much in current assets as in current liabilities. A higher current asset number allows the quick sale of assets, usually at a loss, to pay off current liabilities. From an accounting standpoint, net working capital is the difference between all the current assets minus all the current liabilities. Current assets are those assets you can turn into cash quickly, like accounts receivable. Current liabilities are those bills you must pay now or very soon. How Working Capital Is Used in a Business
Working capital is a liquidity (cash)concept. A business might show a "profit," but if it cannot maintain a positive cash position (that is, having money in the bank to pay bills each month), the business cannot continue to operate. How You Can Get a Working Capital Loan for a Small Business
There are two times when a business needs working capital funds: At business startup, when bills must be paid but there is little money available because you are just beginning to bring in money from sales.