What is working capital?
Working capital is your current assets minus current liabilities — essentially the cash you have available to run the business. When it runs low, even profitable companies can struggle to pay bills on time.
Common uses
- Covering payroll during a slow season
- Buying inventory before a busy period
- Bridging 30–90 day gaps while customers pay invoices
- Handling unexpected operating expenses
How to qualify
Most lenders review recent bank statements to see consistent deposits. With Kacu, a working capital loan is assessed mainly on revenue and cash flow, and you can check your eligibility with no hard credit pull.
Avoiding common mistakes
Do not use short-term working capital to fund long-term projects — the payments arrive faster than the return. For long-term investments, a term loan is a better match.
Frequently asked questions
Do working capital loans require collateral?
Usually not. Most working capital loans are unsecured and approved based on your business's revenue history.