A REGULAR stream of cash is the lifeblood of all medium, small and medium enterprises (MSMEs). It supports your daily operations, pays you and your employees, and helps you plan future business investments. To ensure you'll have enough cash for these, you need to set and consistently manage a certain amount of working capital — especially if you are just starting out in business.

Working capital, sometimes known as net working capital, is the amount of money in your business that you can quickly use for your daily operations. With inadequate working capital, you'll have difficulty in meeting your financial obligations, which can lead to delays and inefficiencies in your business operations.