Are Fast Working Capital Loans the Solution to Your Everyday Business Needs?

by | Nov 28, 2016 | Alternative Business Financing, Small Business Funding, Working Capital

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Are Fast Working Capital Loans the Solution to Your Everyday Business Needs?

In a small business, profits are not realized immediately, making it difficult at times to keep up with the day to day expenses that small businesses incur. Fast working capital loans can give you the boost you need to pay necessary bills without having to lose a percentage of your own company.

What is Working Capital?

Working capital is the cash you have on hand to take care of operational costs for your business. In a small business, it is not unusual for the bulk of the business value to be tied up in the inventory and customer receipts, leaving little left to pay the bills. Without working capital financial responsibilities such as meeting payroll, paying utility bills and even re-stocking items are unable to be met.

A small business owner may consider using their personal accounts and resources to meet those financial obligations. Even going so far as to use assets like a home to secure funding. This is never a wise move as that now puts you into further debt personally, which will also be reliant on your business profits to be resolved. Plus, that is a long term debt you are signing on for, being used for a short term cash flow issue. Long after the business has established enough working capital on its own, you will still be paying interest on that loan.

Fast working capital loans are meant to assist in meeting those needs while your business cash flow has slowed or is stalled. The money borrowed can be used to take care of your monthly expenses until your business profits are realized through the sale of your goods and collection of debts owed to you.

What are the Advantages for a Small Business who Uses Fast Working Capital Loans?

When you infuse your small business with a fast working capital loan you can:
• Take care of bills timely, instead of incurring more debt with late fees and interest.
• Keep your small business running smoothly with employees being paid on time and stock being bought as needed.
• Borrow money on a short term basis rather than assume a new debt that will take years to pay off.
• Use the money to cover costs of what you need. There are few restrictions for the way in which money borrowed in a fast working capital loan is used. With long term loans and mortgages banks will typically require that those funds only be allocated to fulfill a specific purpose, such as an expansion on the space. Capital loans allow you the freedom to decide where the money should go to best serve your business needs.
• Have access to the money quickly. The application and approval time for fast working capital loans can be as short as one week. This puts you in a position to take care of your small business expenses right away, and focus your attention towards sales and returns on your investments.
Consider fast working capital loans if you find that a lack of working capital is not allowing your small business to thrive as it should be. With a fast infusion of cash, your business is able to ride out a financial challenge until a steady flow of income resumes.