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Final Word

Small business owners can use their understanding of working capital to their advantage. If you want to improve your small business's working capital, the first thing to do is a complete assessment of your current assets and liabilities. With strategic thinking, you can make business decisions with the goal of prioritizing your working capital.

Now that you understand the meaning of working capital for your business, you might like to read more about the best working capital loans we recommend for small businesses.

Best Working Capital Loans

FAQs About Working Capital

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About the Authors

Sarah Sharkey

Written by: Sarah Sharkey

Personal Finance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make better financial decisions. Sarah enjoys traveling, hiking and reading when she is not writing.

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Kal Salem

Reviewed by: Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. Kal started his career in public accounting supporting SEC, regulatory, and both internal and external audits. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA...

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Somer G. Anderson

Fact-checked by: Somer G. Anderson

Accounting and Finance Professor

Somer G. Anderson has been working in the Accounting and Finance industries for over 20 years as a financial statement auditor, a finance manager in a large healthcare organization, and a Finance and Accounting professor at Maryville University.

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