Imagine you’re a woman entrepreneur who is running your MSME business. But one day you hit a pause in your business functioning due to lack of sufficient cash reserves, you find it difficult to pay your employee wages, electricity bills, operational cost etc. You also don’t have anyone close to you to help with funding to get out of this situation, what could you do to get out of this situation to save your business from failing?
That’s where working capital comes in. Working capital is the money your business needs for everyday things like buying supplies, paying workers, and covering rent until you get paid by your customers. Just like having enough air in your tires, having enough working capital keeps your business running smoothly.
Here’s why working capital financing is especially important for women entrepreneurs:
Now, getting access to working capital can sometimes be tricky, especially for women entrepreneurs. Here are some common challenges:
The good news is, there are many initiatives to help women entrepreneurs get the working capital they need:
Conclusion
Remember, working capital is a powerful tool to help your business thrive. By understanding the challenges and the support available, you can overcome the hurdles and keep your business pedaling forward. Since NBFCs are ready to give out working capital to business owners without needing collateral and are known to have little to no paperwork involved in the process an MSME should consider NBFCs as their preferred source of capital.
