Operating capital refers to the [[financial resources]] a company needs to effectively manage its daily business activities, including expenses like salaries, inventory purchases, and other short-term costs. For startups, operating capital is important because it ensures that the business can sustain its operations and continue growing after the initial setup phase. Unlike [[seed capital]] used to launch the company, operating capital is necessary for maintaining smooth operations and can be obtained through various means such as [[lease lines]], [[factoring]], or [[vendor financing]] once the startup begins generating revenue.