Working Capital Loans, Explained

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

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).

Lines Of Credit

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.

Merchant Cash Advances

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

Revolutionizing Maintenance: The Future of Power Washing Drones

Revolutionizing Maintenance: The Future of Power Washing Drones. with Robert Dahlstrom, CEO of Apellix Drones In an engaging interview, Robert…

Read More

Navigating Cash Management: Equipment Financing for Startups

Startups often need help with cash management, a critical area prone to missteps. One of the most common mistakes is…

Read More
How to Build Business Credit for Lowest Cost of Capital

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
Optimizing Equipment Financing: Tailored Terms and Structures

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

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

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 and Leasing your Business Equipment

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
What are Working Capital Loans

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
Construction Drone Financing

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 179

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