Working capital: plain-English answers
Working capital is the money that keeps the doors open — payroll, inventory, rent. Here's how much you actually need, when to finance it, and which product fits which cash-flow shape.
What is working capital financing?
Short-term funding used to cover day-to-day operating expenses — payroll, inventory, rent — not long-term investments.
Working capital loan vs term loan: what's the difference?
Working capital is short (3–24 months) and covers operations. Term loans are longer and fund specific projects.
How much working capital does a small business actually need?
The standard rule: 3–6 months of operating expenses. Seasonal businesses need more; SaaS or subscription businesses often less.
What are the best working capital options?
LOC, MCA, invoice factoring, short-term loan — each fits a different cash-flow shape.