A Working Capital Loan Can Help You Keep Up with Daily Needs
Working capital management is the process by which businesses align their short-term assets and short-term liabilities. Working Capital Loans ensure that a business has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses, so that operations can continue without interruption.
No matter how efficiently you run your company, you will always need to have a certain amount of funds on hand to cover daily necessities. In technical terms, working capital can be referred to as your total assets minus your liabilities. Assets might include anything from balances your customers owe you to the inventory you keep on hand, while liabilities include things like payroll that’s due and funds that you owe your suppliers. Naturally, the amount of money you need to keep available grows as your business does, but sometimes during a boom or a seasonal change, you may come up short or be unable to develop your company further because the funds are tied up. This is when a working capital loan becomes beneficial.
A Working Capital Loan Enables You to Start More Projects while Waiting for Customer Payments
Business may be booming, but if you don’t have the supplies and employees on hand to keep up with demand, your customers may go elsewhere. Sometimes the money owed to you can take months to arrive, and in the interim, you have to be able to keep working and serving your customers. A business loan will cover those urgent needs, so your company continues to generate revenue.
Funds Are Generally Made Available for a Short Period of Time
This type of business loan is specially designed to help keep your company running seamlessly while you wait for clients and customers to make good on the debts they owe you. Because of this, most small-business owners only need the funds for a short period of time.
There Are Many Benefits to Obtaining a Working Capital Loan
Competitive Rates- The rates provided by our credit union partners are very competitive, so you can be sure you’re getting a fair deal.
Versatility- You can use your business loan to tie up all sorts of financial loose ends, so you can continue running a profitable enterprise. Pay your vendors, handle payroll, manage taxes, order supplies, and more.
Easy Qualification- This form of lending does not rely on your personal assets, which means if your company is doing well, it’s fairly easy to get the funding you need.
If your company is in a squeeze and having trouble covering its daily needs while waiting on customer payments, a business loan will help. Contact a specialist at the location nearest you, or complete our simple online application to get started today.