Financial capital is essential for growing a successful herbal tea business. It provides the necessary funds to source quality ingredients, develop products, market to new customers, and expand production. Companies usefinancial capitalto maintain daily operations and invest in future growth, ensuring that they can meet demand while improving product quality.
Debt Capital: Loans or credit that a company borrows and repays with interest. Herbalmedicinetea businesses can use debt capital to fund activities like purchasing bulk raw materials, upgrading production facilities, or investing in marketing campaigns to boost brand awareness.
Working Capital: This covers the day-to-day expenses, such as paying suppliers, managing packaging and distribution costs, and ensuring smooth operations during seasonal fluctuations in sales.
