Why Working Capital Loans Are Right For Your Business
When it comes to running a business, one of the most important assets to have on hand is working capital. Without the right funds available, it can be extremely difficult to grow your business or meet your day-to-day needs.
In some cases, small businesses, or companies just starting out, struggle to maintain the necessary cash flow to fund payroll, growth, and other needs. This can leave a company strained and in need of extra cash flow.
The reality is that for many businesses in this situation, their needs are immediate and temporary. This makes traditional lending a less than ideal fit. Applying for a business loan through a bank could mean months of paperwork and waiting. Conversely, working capital loans offer a faster approach to meeting immediate cash flow needs.
Check out the following reasons why a working capital loan might be the right fit for your business, and reach out to our team at Merchant ReFi for further information about this unique financing option.
You Need To Meet Short-Term Expenses
Working capital loans are geared toward short-term needs. Rather than a traditional business loan which focuses on long-term plans, working capital loans are meant to fill in the gap as you strive to meet immediate obligations.
Examples of how this funding could be used include the following:
- Paying off bills
- Funding payroll
- Settling taxes
- Sudden expenses
- Growth opportunities
You Have A Cash Flow Problem
Cash flow can be a constant struggle when you are first starting a business. The good news is that working capital loans are an ideal solution for those who need to boost their cash flow. Utilize your working capital loan to fund short-term goals. In turn, you can build toward long-term goals. Eventually, you will no longer need working capital loans as your business grows and your cash flow improves.
You Need A Fast Solution
Traditional lending is a cumbersome process. Working with a bank to acquire a loan can mean months of paperwork and long wait times before you are approved.
Working capital loans, conversely, are a fast solution. In some cases, approval can be as fast as 24 hours. This means that you can access the funds you need quickly, without wasting any time waiting around for an answer.
You Are Not Qualified For A Traditional Loan
In some cases, the struggle you face as a small business is that you are not qualified for a traditional loan. This can leave you in a bind as you seek appropriate financing.
Working capital loans, however, have less stringent requirements and are therefore easier to acquire. For this reason, they are often utilized by young or small businesses.
You Are Seeking A Simple Application Process
Unlike traditional loans that require cumbersome amounts of paperwork and an in-person visit to your local bank, our working capital loans provide a fast and efficient application process.
Utilizing the latest in fintech, we allow you to apply online for the financing you need. With a few documents on hand, such as your driver’s license, proof of business ownership, bank statements, and a voided business check, you can apply quickly, saving you valuable time.
If you are interested in applying for a working capital loan for your business, we invite you to reach out anytime for further information, or start our simple application process today.