Working capital is the capital (which can include both cash and assets) that a business needs to use on a daily/regular basis in order to operate. A business’s total working capital can change from day to day, as it is simply the current asset amount minus any current expenses. Since this changes every day, it is important to have a rough idea of what your business’s daily working capital is. From there, you can use it to improve any business; this article will focus on how you can use working capital to improve a healthcare business.


One of the best ways to use extra cash earned from your business is to invest in your business. Anyone who has ever so much as been in a hospital or healthcare clinic knows that there are many expensive and high-tech pieces of equipment needed to make a precise diagnosis. While leasing this type of equipment is a good option for businesses that are just starting out, healthcare businesses with high working capital can buy equipment. This, in turn, will add to their current assets and can even work to boost working capital later.


If your business has a high amount of working capital, that is a sure sign that the business is successful. If the working capital has been steady, it could be a sign that your business is ready to expand. There are a couple of common ways in which you can use working capital to fund your expansion.

The first way is to save up whatever excess money you have. This money can be used as a downpayment for various expenses that may come up when you are ready to expand to a new location or add on to your current location. You could also use this money as a down payment on a business loan.

Secondly, you can use physical business assets (buildings, expensive equipment, etc) as collateral when trying to take out a business loan. Make sure to talk to your chosen lending institution to find out what kind of items they accept as collateral for business loans.

Whether you are looking to expand your business or update the equipment inside of it, knowing all about working capital (and more importantly, knowing that you have a high working capital) is the first step. Remember, your healthcare business can only be as good as the time and resources that you put into it.