Benefits of Working Capital Financing

9 Benefits of Working Capital Financing to Boost Your Business

If you are reading this article, chances are you’ve hit a bump in the road with your business, and you need just enough cash to get you over and back to smooth sailing. Is that you? Regardless of your motivation for being here, we are happy to inform you that working capital financing is a strong option for businesses in a variety of situations. Working capital loans can help you cover losses, maintain control, and protect your credit during hard times. They can also help you take opportunities for which you need immediate cash during good ones! Not to mention, these loans are flexible and made to fit your circumstances. Learn more!

Fast approval. The process for acquiring a working capital loan is far less extensive than that for a traditional bank loan. Business owners typically receive access to the money they need within a week of their accepted application.

Few limitations. Business owners are not required to submit their purpose for the money when they apply for a working capital loan. The only restrictions are that it cannot be used for purchasing assets or funding the business long-term. The money should be used for the short-term expenses that are involved in the daily operation, like payroll, inventory, and marketing, but the final use of it is up to the business owner’s expertise and discretion, to make his or her business succeed.

No collateral required. If a business is in good financial standing and has a strong credit history, they can take out an unsecured working capital loan without putting up collateral. There are secured loans available for businesses that are not in the position to take out an unsecured loan.

Short-term. A working capital loan is short-term so that you do not have to spend countless years paying it back.

Maintain control. Taking on an investor means giving up ownership and decision-making power. With a working capital loan, you maintain control over the direction of your business.

Cover losses. A working capital loan can help you get through hard times as a result of the unexpected loss of an employee, equipment, or a building. It is also helpful for lean times in the economy where customers are not paying their bills.

Protect credit. When your business is low on money, it can be easy to damage your credit score by borrowing bank loan after bank loan in an attempt to cover costs. Taking out a working capital loan can protect your credit score by helping you maintain cash flow.

Manage seasonality. If your business frequently faces slow seasons, a working capital loan can be used to cover expenses during these down times.

Zero missed opportunities. Maybe the location of your dreams was just listed for sale. Maybe you need to make a marketing push for a new product. Maybe you need to hire more employees to accommodate for a spike in business. Whatever the current opportunity may be, a working capital loan can provide you with the little extra you need to take it.

Whether you are facing a whirlwind of opportunities or some tough luck, working capital financing may be the next step to boost your business. Here at Cornerstone Credit Services, we offer hassle-free working capital loans for local, Alaska businesses. Alaska business owners ourselves, we understand the challenges that are unique to our state and offer highly personalized service that you can’t find in most merchant service companies. You’ll be amazed at how good it feels to talk to people that truly care about you and your business!