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Conclusion

You can think of permanent working capital as the minimum amount of money you need to operate your business for the short term. As a business owner, keeping this number at the top of your mind can help you avoid getting into a financial pinch. Regularly check on your permanent working capital needs to prevent some unexpected money problems.

Now that you understand the concept of permanent working capital and you know how to calculate it, you might like to learn more about working capital loans and how they could help your business.

Best Working Capital Loans

About the Author

Sarah Sharkey

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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