Working Capital Loans

Working capital loans are short-term business loans designed to bring extra cash into the business. A business will typically use a working capital loan for growth, current expenses or handling emergencies. While most small to medium-sized businesses have a need for working capital, many business owners will struggle with the demands and restrictions of banks and other lenders.

Working capital loans from commercial lenders usually require that the business owner has better than average personal credit and may require some sort of down payment. There can be a significant amount of paperwork and the process can often take weeks or more to complete. These and other criteria imposed by the lenders often prevent small businesses from receiving working capital loans. It is important to know that if your business is in need of working capital, loans may not be your only option. In many situations, business owners will find a Merchant Cash Advance can be more flexible and accessible than a loan.

A Merchant Cash Advance is not a loan. Instead, a business sells a portion of its future credit and debit card sales in exchange for working capital as the purchase price. Because this is not a loan or other form of financing, our range of acceptable personal credit scores of the business owner(s) is much wider than banks or other lenders can offer, and a troubled personal credit history of a business owner is not an automatic disqualifier for the business. The paperwork is minimal, and cash can be in-hand in as few as 72 hours.

Another benefit that a Merchant Cash Advance might offer over working capital or other commercial loans is the ability to spend the money on whatever your business needs. Pay bills, handle emergencies, buy inventory, cover payroll, advertise, expand and more. Take advantage of timely opportunities or plan your business' best steps forward: a Merchant Cash Advance can provide the working capital to get it all done.

Working capital loans and Merchant Cash Advances are both common, but different, financial tools used in many industries. If your business processes signature-based debit and credit card sales, we encourage you to see how a Merchant Cash Advance could empower your current and future business plans.