As a business owner, you are familiar with the everyday expenses that require cash. These include rent, salary, vehicles, bills and taxes, among other things. Slower sales cycles can result in decreased revenues and pose risks to your business. A working capital loan is a resource that can help alleviate stress during these times; it can be used to pay for your day-to-day operating expenses. If you need cash to keep your business moving through slower months or to improve your cash flow to fund daily operations, a working capital loan is a great solution.
Putting Working Capital to Work For Your Business
Whether you are an entrepreneur who is establishing your dream start-up or you are running an established business of several years, it can be difficult to borrow the cash you need. Even with a solid credit score and time in business, bank loans and credit lines are often difficult to obtain. Alternative lending options available through direct lenders and private financing companies can be the easiest way to acquire capital. Some financing companies approve borrowers who have limited or less-than-stellar credit and offer funding within a few days. A working capital loan is unsecured, which means it is not attached to any collateral. This is one reason why working capital loans have a higher approval rate.
The Easier Loan Option, and How to Get it
The approval process for a working capital loan is less stringent with a private financing company than with a large bank or financial institution. Working capital loans are flexibly structured to most effectively meet your individual needs. They have a much simpler and quicker application and funding process that allows you to get access to cash in a timely manner. Depending on who you choose as your lender, some offer lowest payment guarantees, zero restrictions on how you use the cash, five-day funding, short term loans and other advantages.
Selecting the financing company that’s right for you is an important step in the process. Determine your financing needs and look for a company that specializes in working capital loan products and offers competitive rates. Find a lender who has experience working with companies like yours, with a good reputation and excellent ratings.
This working capital blog was contributed by small business loan provider Balboa Capital for the BBB of San Diego, Orange County and Imperial Counties.