Man using working capital loans for his cold press juice shop

Working Capital Loans Remain a Very Popular Financing Option For Small Businesses

Working capital loans provide the necessary funds that small businesses need to cover a temporary cash shortfall. This allows the business owner to quickly return to normal daily operations, pay off the most pressing liabilities, and keep focused on what they do best. Unlike long-term debt, pay back terms typically do not exceed 12 months.

Working capital is a simple calculation based on a company’s current assets, like cash on hand, minus liabilities. Business working capital is determined on a short-term financing basis, usually weekly or monthly. That’s why if working capital runs low, it can pose an immediate threat to the health of a company.

Understanding How Working Capital Financing Works

Small business owners rely entirely on working capital – the steady cash flow they need to meet everyday expenses and keep their business operations running smoothly. When that money is lean, it’s impossible to sustain the most critical functions of a company. This may lead to a dangerous downward spiral and possible bad financial decisions that will hurt the business. For example, companies such as real estate agency businesses or those that operate in wholesale distribution are likely to experience delays in accounts receivables. QuickBridge provides working capital loans during those lean times so that small business owners get the job done. Working capital loans keep companies humming along and keep them away from long-term debt.

Three Main Advantages of Working Capital Loans

A small business can benefit from a working capital loan for a number of reasons. The following are:

1. Fast funding for timely business needs

Working with a lender like QuickBridge, business owners can rest assured that their cash will arrive in as little as a day of receiving a credit approval. The infusion of working capital can be put to use immediately for business operations and can be paid off quickly.

2. Easier access and a less complicated process

Getting these types of loans is typically less of a challenge and a simpler process then securing long-term debt. Plus, a small amount of debt like a working capital loan is preferable to long-term debt or seeking equity financing. These loans usually can be paid off faster and won’t reduce a business owner’s stake in the company.

3. Fuels business growth and expansion

Working capital financing might also come in handy in times of expansion when businesses need extra breathing room to cover momentarily higher spending. This puts them in prime position to capitalize on a time-sensitive opportunity or a last-minute inventory discount, for example.

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Finding the Best Funding Source

QuickBridge specializes in business financing for small businesses, including working capital loans. This is thanks to our streamlined loan application, that is backed by our support team to answer any questions. Get in touch today to learn more about how QuickBridge can work wonders for your company.

  • Simple and easy application process
  • Get a business loan of up to $300K2

  • Receive funds within days of an approval
  • No hidden fees

  • Early payoff discounts3

  • Flexible loan term options