Every business needs funds to operate. Working capital is simply the steady cash flow that a business needs to keep operations running smoothly and meet everyday business expenses.
What are Working Capital Loans?
Working capital loans are financing arrangements that enable everyday operations; the funds needed to cover short-term needs, not to buy long-term assets nor to make investments. They are “liquidity helpers.” Types of working capital financing include term loans, business lines of credit, invoice financing, SBA loans, and merchant lines of credit. Each of these typically has payback terms of 12 months or less.
How Can Working Capital Loans be Used?
Working capital loans can be used to:
Bridge periods where you don’t want vendor problems or penalties due to payment delays when you are facing a cash shortfall.
Make sure that all employees are fully paid on time or to increase staffing.
Increase inventory to enable rolling out a new product, securing a deep discount, preparing for a major promotion, or preparing for a busy season.
Deal with seasonal slow periods when revenues aren’t matching expenses.
Secure extra funds for marketing and advertising. That may include trying out new tools or ramping up marketing actions to drive revenues.
Expand your operating territory.
Seize opportunities such as an exceptional deal or promising new clients.
Purchase new equipment, or upgrade equipment capabilities.
Use This Process to Apply for Working Capital Loans:
Determine what your funding needs are, including purpose and amount.
Choose the loan type that will meet your needs.
Meet with the funding entity and know the repayment terms and interest rate.
Gather the required documents.
Receive approval.
Seek Expert Financial Assistance
Contact the experts at Progressive Capital Funding to achieve your financial goals. Progressive Capital Funding can help you grow your business by offering a wide variety of flexible commercial finance options for small and large companies alike. From SBA loans to unsecured business lines of credit, we’re ready to help find options that suit you best.
