Working capital is essential for the day-to-day operations of a business. It is typically used to pay for regular expenses, such as utility bills, employee payroll, rent, inventory, and marketing costs. Without adequate working capital, a business may not be able to cover its expenses and may struggle to stay afloat.
SBA Express loans and SBA 7(a) loans can be used to fund working capital for business borrowers, but SBA 504 loans cannot. SBA 7(a) Loan for Working Capital and Working Capital Explained provide more information about working capital and how it affects a business's operations.