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4 Best Sources of Working Capital for Your Small Business

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Working capital ensures that your business remains in operation and that you have finances to cover expenses like office rent, raw materials, employees’ salaries, taxes as well as other overheads. In theory, working capital is the amount you get when you subtract your current liabilities from your current assets and indicates your business’ liquidity for everyday functioning. However, what happens when you encounter hiccups in payments and need to upgrade equipment and update inventory in addition to other expenses? You suffer from negative working capital which is detrimental to your business. In order to keep the ball rolling, look into these 4 ways of sourcing working capital for your small business.

Top-up loan 

Many issuers give you the facility of availing of a top-up loan on your existing loan. Let’s say you run a furniture business and require a sum of Rs.12 lakh to buy raw materials for a project that has unexpectedly come your way. If you already have a loan like a home construction loan, you might want to avoid applying from scratch by simply availing a top-up loan. However, there are at least factors to keep in mind. Firstly, your EMIs will increase. Secondly, in the event that you are not able to handle the debt, your pledged property will be at stake.

Sell underutilized assets 

By evaluating the usefulness of your assets you can sell some to meet your working capital requirements. Let’s assume that you run a transportation company and own several large vans, vehicles, and motorbikes. After evaluating the market and assessing potential clients you arrive at the conclusion that in the future. You had require more small vehicles. By selling some of the bigger underperforming vehicles you can get the finances required to purchase more motorbikes, scooters, and cycles. This will hold you in good stead and allow you to venture into avenues such as food and medication delivery and even expand to avenues like bike rentals.


Crowdfunding means getting the finances you require to set up your business through contributions from customers. Investors and the general public that’s looking to make someone’s dream a reality. The whole project can be carried on online, there’s no guarantee that you will actually meet your working capital requirements. Nevertheless, it is an option that lends itself well to innovative concepts. While there are no interest payments involved here, it’s a norm to give your investors something as a token of your appreciation. For example, if you are developing smart toys for children, you can send your investors a toy set from the first batch of your production cycle. 

Working capital loan 

A working capital loan is a safest and quickest way of ensuring that you get the finances you need. Working capital loans are unsecured. A feature that saves you the hassle of identifying an asset and placing it as security. They are also extremely handy as lenders extend to you an amount from where you can borrow as per your supply chain’s needs. And you pay interest only on the amount utilized by you. In this way, your loan remains fine-tuned to your working capital requirements.

Let’s say that you have opened a second outlet that sells fresh fruit juices and other beverages at a tourist spot. Since this is a new location, you’re not sure how much you will need as working capital. By having a working capital loan, you can take immediate decisions and avail finances instantly to procure milk, fruit, ice cream and other raw materials required for your business to flourish.

One of the best working capital loans that you can consider is the Bajaj Finserv Working Capital Loan. It gives you finances of up to Rs.30 lakh in a stress-free manner. You need just 2 documents to apply and your loan will be approved within 24 hours. So, what are you waiting for? Eliminate financial roadblocks and ensure stable working capital all year long.