Small business financing is a great tool for companies looking to build their business via staffing, new equipment, aggressive marketing, or even stocking up on inventory. In particular, working capital loans provide an excellent opportunity for small businesses to increase their cash flow without taking on a long-term debt obligation.
What are Working Capital Loans?
Working capital is a term used to denote the cash-on-hand a business needs to cover routine expenses. Think payroll, utilities, rent, and office supplies. Working capital may be determined simply by subtracting liabilities from assets. If the number is in the negatives, that’s a good sign that a working capital loan is needed.
Working capital loans are designed to fill the gaps in your financing, allowing you to cover these short-term needs. Some benefits of choosing a working capital loan include:
- They are usually unsecured, meaning no collateral is needed.
- There is plenty of flexibility to use your loan however you need to.
- The application process is usually quite quick and painless.
It’s also worth noting that there are different types of working capital loans. Three of the most common types include:
1. Term Loans
Term loans, which supply a bulk sum of cash that must be repaid within a specified timeframe (usually a very brief one, potentially anywhere from six to 18 months).
2. Lines Of Credit
Lines of credit, which function in much the same way as a credit card, providing cash on hand that you can draw from on an as-needed basis.
3. Merchant Cash Advances
Merchant cash advances, which furnish a lump sum upfront, requiring you to repay a percentage of each day’s sales until the loan is paid off.
Curious about getting a working capital loan for your business? We’d love to tell you more about the options we offer here at BNC Finance. Apply today!
Related Post
How to Build Business Credit for Lowest Cost of Capital
In today’s financial landscape, the ability to build business credit is more than a strategic move; it’s a necessary component…
Read More
Tailoring Equipment Financing for Optimal Flexibility: Unique Terms and Structures for Your Business
In the realm of business, financial flexibility is a cornerstone of success. Understanding and leveraging the diversity of financial tools…
Read More
Harness State-of-the-Art Technology with Equipment Financing: A Game Changer for Businesses
Take Advantage of State of the Art Technology In the modern business landscape, keeping up with the latest technology is…
Read More
Jumpstarting Productivity: Accelerate Your Business with Equipment Financing
In the competitive business world, launching your operations and boosting productivity from the get-go is crucial. However, the capital investment…
Read More
Benefits of Financing your Business Equipment
Advantages of Financing and Leasing Commercial Equipment Financing and leasing equipment offers substantial business benefits, especially for startups and established…
Read More
Working Capital Loans, Explained
Small business financing is a great tool for companies looking to build their business via staffing, new equipment, aggressive marketing,…
Read More
How to Qualify for Commercial Drone Financing & Leasing
You pick the Commercial Drone Equipment you need and we help you finance it. Contact BNC for Commercial Drone Equipment…
Read More
What is Tax Code Section 179
What is Tax Code Section 179 Section 179 of the IRS tax code allows businesses to deduct the full purchase…
Read More
Section 179 Equipment Lease Example Video
Section 179 Example Video Here is an example of a business owner using tax code section 179. Steve is the…
Read More
5 Reasons you should replace equipment before it breaks
5 Reasons you should replace business equipment before it breaks Using equipment to the end of its life cycle has…
Read More