WORKING CAPITAL

Do you need a way to cover your business’s daily expenses right now? A working capital loan might be right for you. We have an extensive network of qualified lenders, and we want to help you find the funding you need to keep your business operations running smoothly.

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Working Capital Loans: An Explanation

Working capital loans aren’t specified in the same way as equipment business credit cards or commercial real estate funding. You can use the money for any of your business’s expenses. If you’re in an industry where revenue depends on the seasons, a working capital loan can help get your business through the slow period. When revenue picks back up, you can repay the loan.

Many business owners prefer working capital loans due to their flexibility, and you may be eligible for both secured and unsecured options.

How to get Working Capital

You can acquire working capital in a variety of different ways, including:

Factoring, in which you sell your accounts receivable and receive the cash you need upfront.
Taking out a line of credit, which operates a little like a credit card. Generally, you’ll have a higher spending limit and a lower annual interest rate.
An SBA 7(A) small business loan, which the Small Business Administration guarantees.

Factoring

Working capital includes the value of unpaid invoices. For quick cash, your business can sell your receivable accounts to a factor for a lump sum payment. The factoring company then takes up the process of seeking repayment.

Small Business Association 7(A)

Small businesses can use the SBA 7(A) to obtain some quick working capital. The Small Business Association helps out small businesses by providing low interest loans to businesses in need.

Line of Credit

A secured or unsecured business line of credit can help obtain some working capital. These allow businesses to draw on the line with lower APR than business credit cards. You can pay into your account to free up more credit as needed.

Are There Cases When a Working Capital Loan Isn’t Right for You?

While flexible, there are cases where a working capital loan might not be suitable for you. Working capital loans tend to be short-term. If you need a financing solution over a more extended period, then a working capital loan might not be for you.

Can Your Business Be Profitable While Being Low on Working Capital?

In short, yes. Working capital refers to the ratio of your liquid assets to debts over one year. Your business could still be profitable while in possession of primarily long-term assets, meaning your working capital would be low.

How Much Working Capital do I Need?

You can do a bit of quick math to see where you’re at. Divide your current liquid assets by your current liabilities or debts. What number do you get?

It will depend on the industry you’re in, but a result of around two is usually a good sign. A lower number could indicate financial difficulty in your future.

How Soon Can You get a Working Capital Loan?

That depends on who you go through for the loan. Because of the restrictions they face, large banks tend to move slowly. Private lenders can move much faster often providing a loan in 24 hours.

Are you curious about your financing options? Get in touch today to discover whether working capital financing is right for you.

ADVANTAGES OF

WORKING CAPITAL Loans

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They’re flexible, meaning you can use them to cover a variety of different expenses.

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There are several types of working capital loans from which you can choose.

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Generally, they’re short-term. You get the funding you need without a long-term commitment.

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If your revenue is variable, a working capital loan can help keep your business running smoothly.

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PHONE

Toll-Free: 855-497-2686
Local: 210-756-6408
Fax: 210-485-3842

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Email

Info@BlusteelCapitalSolutions.com

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Address

11844 Bandera Road, Suite 520
Helotes, TX 78023

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