Working capital is the amount of capital that is available for the day-to-day operations of a business. Working capital is typically used to pay for regular expenses, such as utility bills, employee payroll, rent, inventory, and marketing costs. You can calculate your business’s working capital by subtracting the business’s current liabilities from its current assets.
You may need additional working capital to:
Pay expenses
Pay debt
Take advantage of business opportunities
Invest money ahead of seasonal changes
Increase business health with cash on hand
SBA Express loans and SBA 7(a) loans can be used to fund working capital for business borrowers, but SBA 504 loans cannot.