Tag: working capital loans

Working capital is the money your business needs to function on a daily and short-term basis. The amount of working capital you have consists of the cash on hand to make purchases and fund necessary expenses. It is measured as your current assets minus your current liabilities. When the liabilities are greater than the assets things can get scary. Working capital loans are designed to help small businesses cope with these gaps. While they can be helpful, as with any type of loan there are both benefits […]

Many small businesses contract with large companies that take the full 120-day limit to pay their bills. The result is that the small firms often come up short in terms of working capital between payments. And unless those small companies offer a product or service unavailable in the rest of the market, they have little negotiating power with the big firms. This situation makes for some tough choices for small businesses. Take a Discount These big companies will often offer payments earlier than […]