One of the most frequently mentioned financing needs is borrowing money to ensure that the day-to-day business operations proceed financially smoothly. This is also referred to as operating capital: the money that the business needs to meet the day-to-day obligations. Think about paying suppliers, salaries, maintenance and supplementing stocks.
How to obtain sufficient operating capital? You can finance this operating capital in various ways. You do not immediately need to consider financial room within your own business. Think about, for instance, properly handling the stock and active accounts receivable and accounts payable management. In addition, entrepreneurs need money to invest in business assets and accommodation, for refinancing and for expansion and takeovers.