As a small business owner, you understand the importance of having enough working capital on hand to stay afloat during tight seasons and thrive during periods of growth. One type of working capital financing has become increasingly popular: the microloan. Find out what it is and how you can utilize this helpful resource to fortify your business’s cash flow needs.
What is a Microloan?
A microloan is a small loan amount with a short repayment term lasting anywhere between 6 and 24 months. While most traditional banks only want to finance businesses with large capital needs, reputable online lenders like CMS Funding recognize the need for more flexible loan options like the microloan. The approval process is quick and easy so you can actually start using the working capital you need. In fact, funds are usually disbursed within 24 to 48 hours. If you need $50,000 or less, consider a microloan for your next financing need.
3 Ways to Boost Working Capital with a Microloan
Microloans allow for flexible use of the funds you receive. Here are some of our clients’ favorite ways to put their microloans to work.
1. Fuel Business Growth
Whether you need to hire more employees, expand your inventory, or start a fresh marketing initiative, a microloan can make it happen. You know your business better than anyone, so you can use the new working capital to invest in the areas that have the best potential to grow your business.
2. Pay Bills Fast
Few businesses experience a steady increase with margins that perfectly parallel their expenses. If you’ve been hit with sudden expenses or even had a tax bill that was more than you expected, you may benefit from a microloan to use as working capital.
3. Get an Upgrade
The right equipment can go a long way in increasing your productivity and profitability. If you have an upgrade need that doesn’t require a ton of extra working capital, a microloan could be a good fit.
The Bottom Line
You don’t have to borrow an exorbitant amount of money to qualify for a small business loan. Get the working capital your business needs without borrowing more than you need — it’s entirely possible with a small business microloan.