Instant Working Capital Loan Providers For Your Small Business

Instant Working Capital Loan

1. Introduction

When you’re running a small business, there are always going to be times when you need a little extra cash to tide you over. That’s where working capital loans come in.

Working capital loans are designed to help businesses with their day-to-day expenses, such as payroll, inventory, and marketing. They can be a great way to get the money you need to keep your business running smoothly.

There are a number of different working capital loan providers out there, so it’s important to shop around and find the one that’s right for you. In this article, we’ll introduce you to 15 of the best working capital loan providers for small businesses.

2. What is working capital?

Working capital is the money needed to pay for your day-to-day business operations. It is typically used to fund things like salaries and wages, inventory, marketing campaigns, and other expenses related to running your business.

Working capital is calculated by subtracting your current liabilities from your current assets. The result is the capital your business has to work with.

Working capital loans can be a great option for businesses that need access to funds quickly, as they can be approved and disbursed within a matter of days. This makes them an ideal option for businesses that need to cover short-term expenses or in case of an emergency.

3. Why is it important for small businesses?

Small businesses are the backbone of the global economy, and access to working capital loans can provide a much-needed lifeline for many of them. Working capital loans can help small businesses cover short-term expenses, finance expansions or renovations, and weather cash flow fluctuations. They provide an alternative to traditional financing, which can be costly, difficult to obtain, and slow.

By allowing small businesses to access the capital they need quickly and easily, working capital loans give businesses the opportunity to make necessary investments without having to put their own personal finances on the line. This can help small businesses stay afloat in uncertain times, ensure business continuity, and ultimately contribute to the overall health of their communities.

4. Types of working capital loans

There are several types of working capital loans that businesses can choose from based on their individual needs. Here are some of the most common working capital loans available:

1. Revolving Lines of Credit- This type of loan lets you borrow money and repay it while still having the option to borrow more later. This kind of loan allows you to take out money as you need it, and comes with some flexibility in repayment terms.

2. Merchant Cash Advances- This type of loan gives you access to a lump sum of cash and allows you to repay the loan through future credit and debit card sales. You can use the money you receive to cover short-term expenses, finance an expansion project, or cushion any cash flow issues.

3. Equipment Financing- This type of loan allows you to borrow money to purchase or lease new equipment for your business. The loan is typically secured by the value of the equipment and can be repaid over a set period of time.

4. Invoice Financing- This type of loan allows you to borrow money against any outstanding invoices you have from customers. This type of loan provides a lump sum of cash that is repaid with a portion of the invoice, usually when it is paid by the customer.

5. How to get a working capital loan

If you decide to pursue a working capital loan to help with your growing businesses needs, there are a few steps you will need to take. Here is a breakdown of the process for getting a working capital loan:

1. Acknowledge Needs and Research Options- Take the time to review your business’s needs and ensure that a working capital loan is the best option for you. After you have reviewed your options, begin researching loan providers that offer the type of loan you need.

2. Determine Eligibility and Creditworthiness- After you have a list of potential lenders, the next step is to evaluate your eligibility for the loan and your creditworthiness. This will help you determine which lender and loan terms best meet your needs.

3. Compare Terms and Rates- Compare loan terms and rates of the lenders and choose the one that offers you the best deal. Make sure to read the fine print of any loan agreement before signing.

4. Submit Your Application- When you are comfortable with the loan you have chosen, submit an application to the lender. Be sure to include all the required documents and information to ensure that the application process goes smoothly.

5. Accept the Loan- After you are approved for the loan, the lender will provide you with the funds you need. Be sure to use the funds responsibly to help your business grow.

6. List of working capital loan providers

1. Kabbage- Kabbage offers lines of credit up to $250,000. There are no collateral requirements, and you can have up to $100K of the balance unsecured by other assets.

2. Fundbox-Fundbox offers working capital loans up to $100,000 with repayment terms of 12 to 24 weeks. Businesses need at least 6 months in operation and $50,000 in annual revenue to be eligible.

3. BlueVine- BlueVine offers lines of credit up to $250,000. Businesses must have at least $120,000 annually in revenue and a personal credit score of 600 and above to be eligible.

4. National Funding- National Funding offers a Merchant Cash Advance up to $2 million with repayment terms of 4 to 26 weeks. A business needs to have at least $20,000 in annual revenue and been open for more than one year to be eligible.

5. OnDeck- OnDeck offers a line of credit up to $100,000. Businesses need to have a minimum of $100,000 in annual revenue and been open for at least one year to be eligible.

6. StreetShares- StreetShares offers flexible financing up to $100,000 with repayment terms of 4 to 36 months. A business needs to have at least $150,000 in annual revenue and been open for more than 12 months to qualify.

7. Conclusion

The use of working capital loans is a great way to bridge the gap between revenue fluctuations. With so many lenders available, businesses should have no problem finding a loan option that works for them.

Those interested in a loan should take the time to research their options to make sure they are getting the best rate they can. Interest rates can vary widely between lenders, so it’s important to compare all available loan options before making a decision.

Finally, it’s important to note that working capital loans are not considered long-term solutions. In most cases, the loan should only be used to smooth out short-term cash flow gaps, not to finance big and expensive projects.