Working Capital Loans
Working Capital Loans
Lending Overview
Having a steady cash flow is imperative for any business, regardless of industry. When you rely on seasonal revenue, however, cash flow can be anything but consistent. Working capital loans boost your cash flow as needed so you can weather the slow seasons with ease. But you do not have to operate seasonally to take advantage of working capital financing. Use it any time your business needs a boost for special projects, events, new hires, or moving into a new location. Avoid penalties and late fees on your daily expenses when you get a working capital loan. Working capital loans are flexible, so you decide what to spend the funds on, not your lender. Most working capital loans are short-term and come from a variety of different lenders. To get help choosing a loan that is tailored to your business, get in touch with our brokers. We can show you a range of options and help you position your loan application for success.
How to Effectively Apply Funds
Select the ideal working capital option to ensure your business smoothly covers operational costs like utilities, payroll, and more, with our expert guidance.
There are a lot of working capital options out there and the loan you choose will depend on how you want to use it. Lines of credit offer working capital on a recurring basis, so you can borrow from your account whenever you need extra funds. SBA 7a loans give you one-time access to working capital with a low interest rate and low down payment requirements. Factoring is another working capital option that businesses with accounts receivable can tap into. A sudden drop in working capital could mean trouble for your business. Utilities, payroll, rent, fuel, and advertising all require working capital to cover. Our brokers are here to help you find the working capital you need at a price you can afford.
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SBA 7a
If you run a small business and have had trouble getting financing in the past, the Small Business Association can help. The SBA 7a loan is a popular choice for companies looking to access working capital at a low interest rate. You do not need a high credit score to qualify. Let us show you how an SBA loan can help.
Lines of Credit
Lines of credit offer a way to tap into working capital as you need it, as many times as you need it. Any cash you pay into your account frees up credit that you can use later on. If you have a line with a zero balance, you have access to working capital, without paying interest. Ask us for more information.
Factoring
Any business that relies on accounts receivable to get paid can utilize factoring to accelerate the payment process. Factoring lets businesses move ahead even when their customers are lagging behind. Even businesses with low credit scores can qualify for working capital by selling their AR assets to a factor. Ask a broker about factoring today.
Advantages
Empower your business with enhanced operational efficiency and growth potential through tailored working capital solutions, designed for financial agility and sustainability.
Wide Range of Options
Covers Any Business Expense
You Do not Need Good Credit to Qualify
No Long-Term Interest Charges
FAQ’s
Got Questions? We Got Answers!
Q. What is a “working capital ratio”?
A working capital ratio indicates a business’s liquidity. Essentially, it is the business’s current assets divided by its current liabilities. An ideal ratio depends on the business’s industry, but most consider 1.5 to 2.0 to be a good target ratio.
Q. Who uses working capital loans?
Any business that wants to increase its short-term liquidity can use a working capital loan. That includes multi-million dollar corporations and small businesses. To find out if a working capital loan is right for you, speak with one of our knowledgeable brokers.
Q. What are the disadvantages of working capital loans?
Working capital loans are only short-term options, requiring the borrower to pay the loan back in a few years or less. For that reason, they are not as useful for long-term equipment or real estate purchases as an equipment or real estate loan would be. Working capital loans offer a way to meet immediate expenses, not long-term investment goals.
Q. What is a good interest rate on a working capital loan?
Because there is such a wide variety of working capital loan options out there, it is hard to identify just one optimum rate. Your rate will vary depending on the type of loan you choose, your credit history, how much you want to borrow, and what the term of the loan is. For more details and to find specific rates and terms, contact a broker.
