Helping you with all your Short-Term Working Capital Loan Needs
Working capital is the financial need for day to day operations of a business. This money is what helps a business manage its routine expenses on daily basis and keeps business running. Working capital requirements vary from one business to another depending on staffing requirements, workload, rent payments, and other overheads that contribute to the smooth operation of a business. These factors are the reasons why no two businesses have the same working capital needs. Therefore, any business’ working capital solution must be highly customized to its own situation.
What is a Short Term Working Capital Loan?
A working capital loan, as its name suggests, is a loan which is taken to manage everyday operations of a business. A hort Term Working Capital loan is a good choice for businesses that have daily sales and daily deposits into their accounts, and need support in managing predictable slow periods, caused by reduced business activity. One good example of a business that can benefit from a Short-Term Working Capital Loan would be a retail gift shop or a restaurant in the month of January, after the holiday rush is over, while the owners wait for business to pick up in February in anticipation of Valentine’s Day.
Short term working Capital loans are not ideal for long term projects like buying an asset or investment. They are used to cover overheads like employee wages, etc and are best suited for these purposes.
Cities and Regions We Serve
Our team serves clients from all across Canada and the USA.
- Western Pennsylvania
- Pittsburgh Pennsylvania
- All Across The USA
- Toronto and the GTA
- British Columbia
- All across Canada
For Start-Ups and Small Businesses
It is possible to get a short term loan for a startup or small business, however be prepared for more stringent qualification requirements. In addition to the documentation already noted above, you may also need to provide projected cash flow statements and projected financial statements for the next 3 to 5 years. In addition, you’ll need to clearly lay out in your financial projections how you plan to repay the loan. Even with all that, if your business is a startup it’s most likely that you’ll only qualify for a secured loan, so you’ll need some personal assets such as real estate.
Short-Term Working Capital Loans Frequently Asked Questions...
What do I need to qualify?
- Minimum Credit Score: 500
- Minimum Time in Operation: 6 months
- Minimum Revenue: $100,000 annually
Short term loan interest rates are economy-dependant. In a normal or boom economy, interest rates on short term loans will be higher than long term loans, however, in a recession, short term loan rates may be lower than those for their long term cousins.
The interest and repayment requirements of short term loan rates can be calculated in different ways and obviously you’ll want the calculation that is most in your favor. Our experts at Big Think can assist you with finding a lender who will provide your business with the most favorable terms.
What are some of the Benefits?
- Lukewarm credit OK
- Limited paperwork
- Quick access to cash
- Can be used for a wide variety of purposes
Short-Term Working Capital Examples
- Covering small business costs while awaiting payment of accounts receivable
- A Christmas oriented business buying stock in advance of the holidays, with the loan to be paid off after the Christmas season
- Purchase of equipment that will pay for itself in less than two years
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