How Working Capital Loans Can Benefit Your Business
Easily Expand your Business with Equipment Leasing
January 2, 2019
Benefits of Securities-Backed Loans
January 30, 2019Working capital is an important measure of your company’s financial health because it represents the liquid assets that will remain if all the short-term liabilities are immediately paid off. Too much working capital may indicate that the business is not utilizing investment opportunities or does not know about them. But most often the problem lies in too little.
Working capital shortages are not necessarily caused by poor business performance. There could be other factors at play: key customers going bankrupt, debtors repaying after prolonged delays and sudden changes in tastes and preferences that suddenly render your inventory obsolete.
One of the best solutions for low working capital is the working capital loan. Here are the benefits that it can offer your business:
Fast Funding and Flexibility
WC loans are much better than bank loans in this respect because they are extended in minimum time period – when your business needs it the most. This is in stark contrast to bank loans that are extended after an excruciating process. Count on banks to leave you stranded while your business flounders financially.
Alternatively, your business may be doing very well and there is a sudden surge in customers. You will need to quickly replenish stocks through a quick loan but banks are callously slow in extending loans. This means that your customers will leave you for your competitors. You won’t face this market loss and the ensuing disappointment with WC loans.
No Questions Asked
Banks take meticulous note of how you intend to use the loan. The loan application turns into a vexing interrogation. With WC loans, you don’t have to prove yourself. Feel free to use the loan anywhere necessary without constraint.
Ameliorate Cash Flow Problems That Transpire from Quick Expansions
Suppose you spend plenty of cash on acquiring capital equipment to exploit new market opportunities. The cash shortage presents several risks for your company like impeded daily operations, slow vendor repayments and the peril of asset liquidation by impatient creditors. WC loans are the ideal solution because they will ameliorate cash flow shortages immediately and your new capital equipment will yield revenue that will help to easily pay off the loan.
Maintain Ownership
Equity investments by third parties are definitely expensive in the long run. Not only will the equity investors claim ownership stakes in your company, they will also take a big chunk of the profits for life. Working capital loans do not affect your ownership in any way and will take only a fixed interest for a limited time period only. So, even if they have higher interest rates, they are definitely cheaper in the long run.
Boost Your Credit Ratings
Perhaps your business suffered setbacks from the poor economic climate and now you have poor credit ratings. Since WC loans are easily available to businesses suffering low credit, they can judiciously leverage these loans not just to expand their business but also to improve their credit rating in the process.
Boost your business with working capital loans. Contact us right away.
- 3702 Pratt Avenue Bronx NY 10466
- (347) 755-2257
