Working Capital Loans

Working capital is typically used as a financial metric to determine the financial health of a business by evaluating current assets and liabilities. An asset is any item that can quickly be converted to cash, while liabilities are short-term obligations due within one year.

All businesses need access to working capital — it’s crucial for continued operation. Ideally, working capital grows with a business, covering inventories, debt, payroll and more. But sometimes unexpected events can create a financial burden, diluting working capital, which in turn can endanger a business.

A working capital loan can provide a sense of financial security, helping you fund the everyday operations of your business.

A working capital loan is an “all-purpose borrowing” loan, which means it can be utilized in a multitude of ways. Here are a few of the most common uses:

Cash flow loans

A positive cash flow can keep your business in the black. Having enough money on hand to take care of expenses and make healthy decisions is crucial. A working capital loan could help you turn your business’ cash flow around it it’s trending negative.

Debt Consolidation

Taking on various debts can sink a business, especially if they all have different interest rates. A working capital loan can help you consolidate all those debt payments into one, with a single — potentially lower — much more manageable interest rate.

Marketing Expansion

Word-of-mouth is great, but sometimes more concentrated marketing efforts are needed to grow. A working capital loan can pay for a sustained marketing campaign that can help you grow your business without having to touch money you have allocated to necessary business expenses.