Whether you’re managing daily operations, launching new projects, or navigating temporary cash flow gaps, our working capital loans are crafted to support your business’s unique financial journey.
Lending Overview
Working capital loans give businesses a flexible way to handle their daily expenses. While there are many forms of working capital loans out there, they all have one thing in common – they can be used for any business purpose. Most working capital loans are also short-term financing solutions. Working capital is what businesses use to pay rent, manage payroll, get utility services, and purchase supplies and materials. Working capital loans can be used to pay for subscription services, make end-of-term loan payments, and refinance more costly loans. They’re also an effective way to launch new projects, fund business travel, and bring in temporary staff. Working capital loans come from banks, private lenders, and the government. Lenders offer their best deals to brokers, who match businesses with the ideal working capital loans to meet their goals. Brokers provide guidance, side-by-side loan comparisons, and help with the application process. Ask your broker what they can do for you.
Smart Strategies
How to Effectively Apply Funds
The best use of working capital funds depends on your individual business needs and goals. Working capital loans can help you catch up on bills and boost new projects. They can be used to address unexpected expenses and smooth out seasonal revenue cycles. To find out how much capital you need, calculate your working capital ratio. The ratio is your current liquid assets divided by your current liabilities for the year. An ideal ratio varies by industry, but most consider a ratio of 2.0 to be the perfect number. Any less means you need to increase your working capital. Any higher indicates you could be missing investment opportunities. No matter what your ratio, a broker can help you build a financial plan.
Advantages of
Working Capital Loans
You don’t need a high credit score to qualify.
Loans cover most business expenses.
Low interest rate options are available.
Loans can be approved quickly.
Our Values
We are dedicated to serving each client at the highest level.
Integrity
Innovation
Trust
Tailored Lending Solutions
Flexible Financing with Working Capital Loans
Lines of Credit
Lines of credit offer immediate access to working capital whenever your business needs it. Credit lines can be used again and again, with payments going to free up the balance for future needs. Secured lines offer lower interest rates and higher borrowing limits than business credit cards. Ask a broker for details.
SBA 7a
The SBA provides guaranteed loans for working capital to businesses with $5M or less in net annual revenue. The SBA 7a loan has a 5 to 7-year term with a low minimum down payment and capped interest rates. You can also roll working capital in with an SBA real estate loan, making them ideal for real estate investing.
Term Loans
Term loans are often a go-to for startups seeking working capital. They increase cash flow temporarily so businesses can bring in supplies, inventory, and staff. Most terms are a year or less, but loans can be refinanced into long-term solutions if needed. Ask your broker to show you which options are available.
FAQ
Frequently
asked questions
Q. How do I get approved for a working capital loan?
The answer depends on which loan you want. The SBA 7a loan and secured lines of credit don’t require a high credit score to qualify. In most cases, you will need to be in operation for at least six months and contribute a down payment on the loan. A broker can provide you with tailored working capital loan recommendations and help you with the application process.
Q. When should a business get a working capital loan?
A business should get a working capital loan any time it wants to increase cash flow. That may be to catch up on expenses, boost a new project, or expand. Seasonal businesses use working capital loans to even out cash flow over the year. Speak with a broker about what a working capital loan can do for your business.
Q. Are working capital loans expensive?
Depending on your needs, working capital loans can be very affordable. If you’re able to secure the loan with collateral, you’ll get a lower interest rate loan with a higher credit limit. SBA 7a loans have a capped interest rate and are designed for businesses that have had trouble borrowing in the past. Lines of credit only charge interest on the balance in the account, making them very affordable when the balance is kept low. Ask your broker for details.
Q. What are the disadvantages of a working capital loan?
Working capital loans are very versatile, but they’re not the best way to finance real estate, equipment, or other high value capital items. For those purposes, a CRE loan or SBA equipment loan are better choices. Ask a broker to show you competitive offers.
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