Working Capital Loans
Get the Business Capital You Need to Keep Your Business Strong
$25,000 – $500,000
1 – 5 Years
$5,000 – $300,000
4 – 24 Months
$5,000 – $100,000
1 – 2 Years
Up to $250,000
Up to $200,000
1 – 12 Months
Actual offers vary based on your application information and lender.
What Is Working Capital?
Simply put, working capital is the difference between your assets and liabilities — that is, the amount of capital you have on hand to keep your business running. With many businesses — especially small businesses — a significant portion of revenue can go towards keeping the lights on, employees paid and other day-to-day expenses. That can leave little left to use for growth, without much of a cushion during slow seasons.
What Can I Do With a Working Capital Loan?
Getting funding for working capital can help you take care of the basic costs of running your business, making sure everything keeps running smoothly while you invest in the future. Common uses include:
Where Can I Get Working Capital Loans?
There are several options for working capital financing, depending on the details of your business. Before you apply for any, you should carefully consider your options and pick the choice that’s best for your business.
Short for “Small Business Administration loan,” SBA loans tend to be affordable options for business owners — that’s because the government guarantees a portion of the loan, promising to pay even if the business goes bankrupt. This allows lenders to offer lower interest rates; SBA loans usually have APRs of 6 – 9%.
These are what many people think of when they think of business loans — you apply with a bank or credit union and, if approved, get a lump sum repayable over years. Because the lender is footing the risk, these loans will usually have stringent requirements and will often have higher APRs than SBA loans.
With factoring, a business sells their accounts receivable for cash. Because the transaction takes place immediately, businesses don’t usually have to wait a long time to get approved for factoring — a plus when you need capital fast. On the other hand, it may be a more expensive form of financing.
Line of Credit
A line of credit allows you to draw up to your credit limit as often as you like. As you repay what you borrow, your credit opens back up without your having to reapply, and you usually only pay interest on what you’ve currently drawn. This makes lines of credit attractive options for businesses that have variable financing needs.
What Does The Business Backer Offer?
The Business Backer offers small businesses a range of funding options, including in-house products and third-party offerings through our True Relationship Network™. After applying, eligible businesses are matched with a dedicated Funding Advisor who works to help find the perfect funding solution for each business’ specific needs.