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Kinaway

How to access working capital without owning a house

Understanding your working capital needs is key to unlocking the growth of your business, but knowing how to access it can be tricky. If you don’t own a home or an asset you can use as collateral, banks and traditional lenders usually won’t be able to help. Here’s a quick rundown to help you understand if you need more working capital, and how to access it hassle-free. What’s considered a healthy working capital ratio? Generally, a business needs a positive working capital ratio (you can calculate this by taking your current assets and dividing that by your current liabilities). Theoretically, a working capital ratio of 1.0 indicates that a business should be able to adequately meet all of its short-term obligations. However, most businesses (as well as analysts, banks, and accountants) will want to see a slightly higher number. Excess working capital will give a business a cash cushion against…

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