To keep up with monthly expenses, businesses may need a working capital loan. Also known as operating capital, working capital is the type of funding businesses need to manage baseline expenses. Without working capital, your business may have to restructure or strain its budget. As a working capital lending partner, we at Porter Capital help both large and small business owners avoid these situations through flexible, short-term loans and lines of credit.
You can increase your financial security and stability with a working capital loan, no matter your business’s size. Porter Capital has been the country’s expert in capital solutions for over 30 years. We prioritize your success through reliable lending services. Discover what a working capital business loan can do for you!
What Is a Working Capital Loan?
A working capital loan is a temporary source of funding for everyday expenses, including:
- Daily operations
In short, a working capital loan agreement is a solution for businesses that need to pay their day-to-day expenses. This short-term option is perfect for businesses in lull periods or with low cash flow. You can take advantage of working capital financing services to avoid straining your budget or sacrificing quality.
Some business loans help individuals finance long-term investments like real estate or growth stocks. Working capital funding services offer short-term solutions that improve your stability throughout a less profitable period. Lenders will help you determine the appropriate limit or loan amount by subtracting your current liabilities from your current assets.
Why Choose Working Capital Business Loans?
Business owners use working capital loans to cover their daily expenses and enjoy greater security throughout the fiscal year. Working capital can give new and established businesses the time to create more long-term solutions. With a working capital loan, you can finance your business’s needs throughout the year. Many companies choose working capital financing because it provides:
- Everyday flexibility: You can be flexible with additional income when you have the funding to finance your routine expenses.
- Security throughout lull: Low profitability periods can put your business at risk of financial strain. Have confidence throughout your slower periods with a working capital business loan.
- Room for personal growth: Some business owners invest additional profits in their retirement funding so their team can be even more confident in the company.
- Full ownership solution: Working capital financing doesn’t require equity, allowing you to control the company fully.
Types of Working Capital Loan Options
Short-term working capital loans are great for businesses with a set timeline for their financial goals. Many of these loans have a fixed interest percentage rate and repayment terms, and it’s common to pay your balance within a year. Short-term loans can be secured or unsecured, depending on your financial standing. If you’re hoping to buy new equipment or inventory for your company, short-term working capital may be the perfect solution!
Business Line of Credit
Business lines of credit allow the borrower to access a constant cash flow within the set limit. Also called a line of revolving credit, this working capital funding service is best for businesses with reliable repayment options. With a line of credit, business owners can apply once and continue to use their credit by repaying the appropriate amount with interest.
Startups are some of the most common applicants for working capital loans. As you work to establish your company, you can receive a working capital offer to cover any expenses. This funding can be the baseline you need to create reliable income for the future.
How to Determine If Your Company Needs Working Capital Solutions
You may be familiar with countless financing options for your company’s needs as a business owner. So how do you know if a working capital loan is your best choice?
At Porter Capital, we have created working capital solutions for businesses across the market. We recommend working capital loans for companies that need a short-term influx of funding to cover their necessary expenses. If this sounds like you, here’s how you can make sure this option is the best solution:
- Understand the application terms: Porter Capital can review all terms and conditions depending on the type of working capital service that best fits your business. We strive to make the loan application process simple with easy-to-understand terms.
- Research interest rates and fees: Working capital interest rates and service fees may differ from client to client, but Porter Capital is transparent and will provide all details upfront.
- Work with your lender: At Porter Capital, we help businesses like yours determine the best solution for short- and long-term financing. Working with our team allows you to feel confident in your loan or line of credit, no matter the terms or limits.
Choose Porter as Your Working Capital Provider
If your business has cash flow issues and needs immediate working capital, we have the assets to help you succeed. At Porter Capital, we’ve simplified the application and approval process so you can get the appropriate working capital financing solutions. Watch your business meet and exceed its goals with our short-term working capital services.
To begin the process, contact our team online or call 1-800-737-7344!