Working capital is the financial resources companies need to operate and grow. It’s often defined as the difference between current assets and current liabilities, or current assets minus current liabilities. Examples of current assets include cash, accounts receivable, and inventory, while examples of current liabilities include accounts payable, wages and taxes owed, and notes payable. Many times, businesses are able to access working capital through a loan from a bank or another type of financial institution. Sources of working capital can also come from internal sources such as cash flow generated by operating activities and external sources like short-term loans. By understanding the different sources of working capital, businesses can make informed decisions about how to manage their finances.