Working Capital Loans

What is a Working Capital Loan ?

 

A working capital loan is a type of short-term financing that a business takes out to cover its daily operating expenses. These loans are specifically used to cover a company’s current liabilities instead of buying equipment, real estate, or other long-term assets.

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For example, working capital loans can provide small business owners with funding to keep their businesses afloat during slow sales seasons. They can then use the funds to pay for any business expenses, including office space rent, inventory, salaries, and equipment repairs and maintenance.

 

Is a Working Capital Loan Right for Your Business ?

 

A working capital loan is beneficial for businesses that need access to fast capital to cover general operational expenses. This is because this type of financing is extremely easy to apply and qualify for. Most forms of working capital loans are also unsecured, which means no collateral is required to secure the loan. These types of loans can be funded within 24 to 48 hours and have a variety of terms.