What Is a Working Capital Loan?
A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.
Those needs can include costs such as payroll, rent, and debt payments. In this way, working capital loans are simply corporate debt borrowings that are used by a company to finance its daily operations.
KEY POINTS
- A working capital loan is a loan taken to finance a company’s everyday operations.
- Working capital loans are not used to buy long-term assets or investments; they are used to provide working capital to covers a company’s short-term operational needs.
- Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.
- Working capital loans are often tied to a business owner’s personal credit, so missed payments or defaults may hurt their credit score.
Qualifications for a Working Capital Loan
- 1 year in business
- Minimum FICO: 500
- Minimum Monthly Revenue : $10,000
- Easy application process
- Quick approvals
- Daily or weekly repayment options
How to apply
- Click on link below
- Fill out application
- Attach 4 month of recent bank statements