What Are the Challenges in Working Capital Management for Startups?
Startups often face unique challenges in managing their working capital, including:
Limited Access to Credit: Due to their nascent stage, startups may struggle to secure credit lines or loans. Unpredictable Cash Flow: Irregular revenue streams can make it difficult to maintain consistent working capital levels. High Initial Expenses: The initial phase of a startup often involves significant expenditures, which can strain working capital. Supplier Credibility: New businesses may find it challenging to establish credibility with suppliers, affecting their ability to negotiate favorable terms.