Working capital loans are options used by businesses to fund their ongoing operations or boost their cash flow. When cash-flow bottlenecks occur, a business can obtain this type of financing so that it will have enough money on hand to pay for basic costs such as rent, utilities, employee pay, and other expenses. In actuality, there are a wide variety of financial products that can solve working capital funding problems.
Solutions for Shortfalls in Working Capital
There are various types of loans for you to consider utilizing. Here are several of the most common types of capital infusion options:
- Short-Term Loans. These loans, often granted by banks or capital companies, with little or even no collateral, generally carry terms of a year or less, and are meant to cover short-term cash-flow difficulties.
- Business Line of Credit. A line of credit is a pre-set amount of money that you can access as needed and then repay immediately or over a prespecified period of time, along with interest.
- Merchant Cash Advance. An advance of capital is taken against a business’s future credit card sales and repaid incrementally as sales are made.
- Equity Funding. If you are just starting up, a home equity loan or borrowing from friends or family may be helpful.
- Accounts Receivable Financing. Potentially structured in different ways, this is an arrangement by which a company receives funding related to a portion of its outstanding invoices.
These a but a few of the most popular ways to move past cash-flow shortages. There are additional forms of alternative financing available from capital funding agencies
Private Client Capital Partners
Connect with Private Client Capital Partners to secure funding for almost any aspect of your business operations or growth plans. Their courteous staff awaits your call.