Having insufficient working capital can be a major risk for businesses. Without enough working capital, businesses may not be able to pay their expenses, debt, or take advantage of business opportunities. This can lead to cash flow problems, which can cause businesses to miss payments, default on loans, and even go out of business. Additionally, having insufficient working capital can lead to a lack of liquidity, which can make it difficult for businesses to invest money ahead of seasonal changes or increase their business health with cash on hand.