Fund Your Small Business With These Working Capital Loans

As a small business owner, you need a steady stream of working capital to keep your operations running and to work towards turning a profit. If you are interested in finding new sources of capital to use, you may want to consider using one of these working capital loans.

Purchase Order Financing

When you get a large order from a client, you may be excited that you have the opportunity to do this level of business, but worried about how you will fulfill this order. Fortunately, purchase order financing can provide you with the funding you need to pay your supplier’s expenses. This way, when you get an order, you don’t have to panic about where you will get funding from. You may also be able to increase the number of larger orders you fulfill, ultimately enhancing your business’ profitability.

Invoice Factoring

When your clients pay you 30 to 60 days after they make a purchase, your cash flow operations may suffer. Invoice factoring, like other working capital loans, can help you maintain your business’ cash flow. However, keep in mind that this form of financing is not technically a loan. Instead, it is merely an advance that helps you keep your business’ operations afloat while you wait for payment.

Asset Based Lending

Much of your business’ value may be tied up in equipment and inventory. If you would like to keep these items from harming your business’ profitability, you can finance them. This way, you have the capital you need to fund your operations, without sacrificing your business’ need to buy new equipment and inventory over time.

Conventional Financing

When you think about making an appointment with your bank and going in to acquire financing, that’s what conventional financing is. Typically, this is a type of financing that includes standard business loans and small business lines of credit, both of which can be highly beneficial. However, conventional financing can be difficult for small businesses to qualify for. To improve your chances of qualifying for conventional financing, you must be able to prove to your bank that your operations are profitable and headed for success.

Microloans

When it comes to working capital loans, microloans are a highly beneficial option for small business owners. This financing program is specifically designed for small businesses and is monitored by the Small Business Administration. Unlike conventional loans, microloans have much more lenient qualification requirements and can be obtained within a fairly short period of time. The best part is that you can use these loans for nearly any type of business-related expense.