Working capital finance makes it possible for your business to obtain capital if you have been denied for a bank loan, or if you have little cash flow. Traditional funding through a standard bank can be difficult to obtain, but they also don’t satisfy the needs of expanding companies. Without capital a business will have to slow down there growth, which can hurt a business. Working capital finance makes it possible for your business to have access to the cash it needs, when it needs it.
Working capital finance allows you to turn your income streams into instant capital. You can turn your accounts receivables into cash by selling them to a lender who specializes in accounts receivable factoring. Another method for obtaining working capital is to lease equipment or to obtain credit from a company like Office Depot or Lowes that sells items that your business needs.
Obtaining lines of credit from a company are easier than going after a bank loan. If at all possible obtain a line of credit from a company that will report your business credit scores to the major business credit bureaus. This will help build your business credit scores, so it is easier to qualify for large bank loans.
Another popular method of working capital finance is utilizing asset-based financing. That means that you would use assets from your business to secure loans. You could pledge any commercial real estate your business owns, business vehicles, equipment, etc. Lending institutions approve asset-based loans quicker because the risk isn’t as high. Small companies often can obtain more cash with an asset-based loan. The Commercial Finance Association provides valuable information on asset-based lenders.
Search our funding directory for free to find quality lenders that can provide your business with the money it needs to expand.