Working Capital Loans
Maintain cash flow and be ready for opportunities with a working capital loan.
Find Out How Much Cash Your Business Could Receive
Understanding Working Capital Loans
Working capital refers to the cash a business has on hand, so a working capital business loan helps cover temporary cash shortfalls or immediate business expenses. This allows a business owner to maintain daily operations and keep their business running smoothly. Working capital loans focus on immediate financial needs and often have shorter payback terms of up to one year.
How do you know how much working capital your business has? There’s a simple calculation for that. Working capital is determined by a company’s current assets minus its liabilities. Assets include accounts receivable, inventory, and cash on hand. On the other hand, liabilities include payments due and other expenses.
To put it simply, working capital is calculated as: Current assets – current liabilities = working capital
Business owners know the here-and-now for a business is just as important as planning for its future. If working capital falls too low for a business, it can threaten the health of a company. A steady flow of cash is needed to sustain critical operations, which is where QuickBridge steps in to bridge those disruptions and carry a business through lean times.
Our dedicated loan specialists are committed to finding the best small business financing solution for your business. Because working capital loans are designed for those immediate business needs, QuickBridge works fast to secure your funding within a matter of days upon approval. There’s no waiting around so you can make quick decisions to drive business forward.
How Can a Working Capital Loan be Used?
Bridge a Gap in Cash Flow
Capitalize on Growth Opportunities
Cover Emergency Expenses
Fund Short-Term Projects
How Do You Get Working Capital Financing for Your Business?
Applying for a working capital loan is simple. While traditional banks have difficult and long application processes, alternative lenders like QuickBridge limit the number of hoops you have to jump through. We believe securing a financing solution for your business should be as easy as possible. Once you submit your application, one of our dedicated loan specialists will work with you to find the right lending solution for your business.
Types of Working Capital Loans
Working capital loans can fall into a few categories, depending on what works best for your business. There are many possible solutions for your business, and one of our trusted team members will customize a loan offer based on your specific business needs.
Some common working capital loan types you’ll see include:
Similar to a working capital loan, a short-term loan is designed to cover immediate business needs with repayment terms lasting up to one year. This loan type is best suited for businesses who are looking to capitalize on a growth opportunity, meet increased demand, or fund a short-term project.
An unsecured business loan doesn’t require you to give up any personal collateral, such as your house or other assets, upon agreement. This loan type gives less risk to the borrower and is a great option for businesses without much collateral.
A bridge loan is a short-term financing solution that has a specific financing purpose. It’s designed to cover payments for a specific purchase or existing obligation. Common uses for a bridge loan include real estate purchases, acquiring competing businesses, or buying more product.
You’ve probably heard the phrase “alternative lender” here before, but what does it refer to? An alternative lender is often an easier financing solution for business needs compared to traditional banks. While banks have high eligibility requirements and long applications, alternative lenders like QuickBridge step in with flexible requirements, fast application processes, and quick approvals so businesses can secure the funding they need efficiently.
What are the Requirements For Working Capital Funding?
We keep the eligibility requirements to a minimum, so you’ll find it’s easier and faster to secure funding for your business. To be eligible, it is recommended to have:
- · At least six months in business
- · Minimum $250,000 in annual gross sales
- · Fair to excellent credit
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Main Advantages of Working Capital Financing
A small business can benefit from a working capital loan for a number of reasons. The following are:
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.
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.
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.
Working Capital Loan Resources
Deciding which type of small business loan is right for you requires some research. Here we’ll walk you through major types of funding and which is a good option for your business.
When you’re ready to expand your business, there’s a lot to consider. Our tips help give some guidance on the main things to focus on when scaling up.