‘A good business plan is the key to success.’ Correct? No. A good business plan is only one component of a successful business, good working capital management is what keeps it going.

As Julia Hawley, a New York based writer says in her article on Investopedia, "Proper management of working capital is essential to a company’s fundamental financial health and operational success as a business. A hallmark of good business management is the ability to utilise working capital management to maintain a solid balance between growth, profitability and liquidity."

Working capital, also defined as the difference between current assets and current liabilities, is basically the cash reserve a business maintains in order to manage their daily operational cost. A positive working capital cycle ensures sufficient cash flow, which further ensures smooth functioning of the business. Hence, working capital management: a strategy to efficiently manage a business's current assets and current liabilities, has become a thing to ensure the company’s short-term financial stability. Given that, if your business working capital is ever facing turbulence, here’s how you can improve the cash flow.

  1. Business Loan: Since almost all of us are aware about the concept of business loans, you can apply for one and use the funds to manage your working capital.

  1. Personal Loan: As a business owner with a good CIBIL score, you can also use a personal loan to improve your business cash flow.
Working Capital Loan: The same goes with working capital loans. Though it’s a relatively new product, but as the name suggests, you can use this facility to manage the cash flow of your business.