Working Capital Loans
Easy: Working capital financing has many options, smoothing the path to funds.
No equity: Many working capital loans aren’t secured against assets.
Options: Get a secured or unsecured loan
Flexibility: Use the funds for whatever you need
Working Capital
Working capital is vital to every business, large or small. That’s why it’s so important to make sure your cash is flowing the way it should. Lack of working capital can lead to overdue fees, service cancellations, and hits to your credit score. If you’re experiencing restricted cash flow, a working capital loan can help. Working capital loans can be used for any business expense, from payroll to interior design. They’re short-term loans, allowing you to tackle expenses without incurring long-term debt. Working capital loans are known for their flexibility and can be secured on your company’s assets, making them easy to qualify for. Working capital financing comes in many forms, which means you have a variety of options. Choose an SBA loan, a line of credit, factoring, or a hard money loan to get the cash you need. Term loans are available too, when you connect with your broker.
Line Of Credit
Seasonal slumps in revenue can mean trouble meeting expenses like payroll, rent, and utilities. Lines of credit can boost your cash flow and keep your finances afloat all year long. When you open a line of credit, you have access to cash right away that you can use anywhere your business needs it. With each payment back into your account, you free up room to borrow again. Lines of credit work a lot like business credit cards, but with higher credit limits and lower interest rates. They let you borrow from your account as often as needed and only charge interest on your current balance. If you have a zero balance, you won’t pay any interest charges. This makes them a great tool to have for emergencies. Having a line of credit in your back pocket means you won’t have to seek a new loan every time you want more working capital. Ask a broker for details.
Accounts Receivable factoring
Waiting for customers to pay their invoices 30, 60, or even 90 days after delivery is a common woe for many businesses. While you wait, expenses keep flowing in, creating financial tension and worry. Factoring is a way to get what you’re owed today, without taking out a loan. If your business has accounts receivable assets, you can leverage their value to get an influx of capital ahead of customer payment. A factoring company will buy those assets and turn them into cash. When your customer is ready to pay, they pay directly to the factor, eliminating your need to process payment or repay the funds. You can factor one large account or bundle several invoices at once to bump up the cash value. Invoices, purchase orders, and contracts can be sold for immediate cash when you need it for expenses or want to finance timely projects. Learn more about factoring from your broker.
The Funding Lane
How to Effectively Apply Funds
With the freedom you get with working capital loans, they’re easy to use for whatever your business needs. Since funds aren’t tied to one purchase or expense, you can use them to buy supplies, pay utility costs, or host an event. They’re effective for staving off late charges from creditors and avoiding late payment penalties on the services your business depends on. If your business credit history has taken damage, you can still get a working capital loan. Access options based on your assets, not your credit score, when you let a broker guide the way. Find out more by reaching out today.
payroll
Meet payroll expenses and ensure all employees are paid on time and business operations continue smoothly.
rent | mortgage
Cover rent or mortgage costs, preventing any delay in payments and avoiding potential loss of your facilities.
supplies
Purchase necessary supplies, keeping day-to-day business operation moving ahead at full speed.
marketing | extension
Reach new markets and grow revenue with new marketing campaigns and business growth initiatives.
debt consolidation
Consolidate debt to pay it off on your schedule while avoiding the need to apply for future loans.
emergency
Have a safety net in place that you can draw on immediately at any time to cover unforeseen emergency costs.
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FAQ’s
We believe that the more you know, the better the decisions you make. And in the financing world, better decisions mean lower rates, better terms, and increased profitability.
These FAQs are only the start. Our team is here to answer all of your questions and support you in finding the best financing solution for your unique scenario.
Q. What is an example of a working capital loan?
Lines of credit, SBA 7a loans, term loans, and invoice factoring are all options that provide working capital. Working capital loans are short-term financing meant to cover gaps in liquidity. To find out which is right for your business, consult a broker today.
Q. How much working capital can I borrow?
The answer depends on the type of loan you want. Asset-based loans let you access a percentage of that asset’s value. SBA loans are based on your revenue and time in business. Unsecured loans are based on your credit score. How much you can borrow is dependent on several factors. Your broker can answer any questions you have about securing working capital for your business.
Q. What are the disadvantages of a working capital loan?
Working capital loans are designed to offer short-term solutions and aren’t suited to making real estate purchases, large investments or solving mid to long-term cash flow challenges. If you have real estate or construction needs, a more specialized loan would be a better option. Ask your broker to match you with the right loan for your unique needs.
Q. Do I have enough working capital?
There are a few ways to determine if you have the working capital you need. One is the working capital ratio, which is your current liquid assets divided by your liabilities. A ratio of 1 or less means you could be in trouble. For more tools to assess your working capital needs, speak with our brokers.
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Get Funded
The funding process starts with a short 3 minute online application. Our team will then review your needs and quickly provide you with a custom funding proposal that targets your desired financing types, rates, and terms.