Working Capital is typically used as a financial metric to determine the financial health of a business by evaluating current assets less current liabilities. Current assets are items that can quickly be converted to cash, while current liabilities are short-term obligations due within one year.
Access to working capital is crucial for all business to meet their continued operational needs, whether they utilize a business loan or not. As a business grows, cash flow must expand with it in order to be successful. Managing inventories, debt recovery, and payroll are just three examples of how working capital can help your business.
Unexpected events do arise, and these events can create a financial burden and dilute the value of your working capital, requiring months of recovery time. Working capital loans provide a sense of financial security when it comes to making healthy business decision. These types of loans are designed to finance the everyday operations within you business. These types of loans are a form of “all-purpose borrowing,” meaning you can apply these loans to nearly any aspects of your business to further your growth wherever it is needed.
Common uses for Working Capital Loans include, but are not limited to CASH FLOW, DEBT CONSOLIDATION, AND MARKETING EXPANSION.