As an entrepreneur, launching, growing and maintaining a business can be an owner’s biggest obstacle. From time to time, your business may require quick access to cash. Whether it’s needed to hire and train new employees or make upgrades to existing equipment, a working capital loan may be the answer.
Is a working capital loan right for your business?
Let’s take a look at the benefits:
- Inventory management
Are you running low on inventory? Do you need to fund an upcoming purchase order? If you’ve answered yes to any of the above questions then you are probably in the market for additional funds. Working capital can be a great solution for businesses of all sizes that have found themselves in a period of low cash flow. These loans act as unsecured debt, so you are not even required to provide traditional collateral.
- Daily expenses
Have you noticed that sales tend to decrease during a certain time period? Maybe revenue drops in summer months and flourishes in winter months.If so, you’re not alone as seasonality can play a big part in revenue trends. What do you do if a large Purchase Order comes in during low cash flow months? You obviously do not want to miss out on the sale, right? Regardless of your past credit history, you can still gain access to money quickly and securely with a working capital loan.
- New equipment
In many cases, investing in new equipment is expensive. But have you thought about the consequences of using old, outdated equipment? Outdated equipment and technologies may very well be holding you back and, in turn, hurting your long-term business goals. We understand that many business owners turn to older equipment simply because they do not have sufficient funds to support the purchase. Both working capital loans and equipment lease transactions will allow you to upgrade old technologies with flexible payment options.
- Business expansion
Have you been presented with an opportunity to grow your business? In the end, if the profits are expected to exceed the cost of the expansion, consider a working capital loan to fund your growth.
- Hire staff
As your business grows, so does the need for additional resources. Hiring additional team members improves customer service, prepares the business for busy seasons, and reduces frustrated employees that are being over-worked. Your business will struggle without a team of talented professionals, and just because funds are currently low shouldn’t mean that your business suffers. This would be another great scenario to utilize a working capital loan.
The Bottom Line
Working capital loans allow you to invest in the future of your business. Start by asking yourself “does the potential return on investment (ROI) outweigh the temporary debt?” If it does, a working capital loan will help you capitalize on upcoming opportunities.