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.
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.
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.