Your application will be processed and reviewed by one of our dedicated account managers, who will help to find the most suitable lender to provide working capital. The lender will present you with the loan’s terms of agreement. This is your chance to discuss any questions you have before signing on the dotted line. In just 24 hours from signing you could receive the funds in your business bank account. How can I use a working capital loan? Working capital loans are a simple and suitable way of accessing capital for your business. The beauty of this funding product is that it can be employed in a variety of ways. How you choose to use the loan is entirely up to you, and will depend on your industry and individual circumstances. Why choose us for a working capital loan vs. What is working capital? Working capital is defined as the amount of money a business can safely spend to cover daily operations.
Other ways of getting these types of loans include using business credit cards or taking out loans from family and friends. Some business owners take out business loans from banks. Operational expenses can include anything from rent and utilities to payroll and inventory. To get a working capital loan, a company will need to show that it has the ability to repay the loan and that its operational expenses are manageable. If you’re thinking of taking out a working capital loan, be sure to shop around and compare rates and terms from different lenders. You’ll also want to make sure that you understand all the fees and charges associated with the loan before you sign anything. You can get a working capital loan as either a secured loan or an unsecured loan. The credit scores of businesses determine what type of loan they get. You might wonder business term financing what type of business financing you can get. As a business owner, your credit rating determines the most suitable loan for your needs.
Businesses are a large part of our Lankan culture, it fulfills an everyday need for the common man. The Coronavirus pandemic has had a devastating impact around the world to our daily life causing the disruption of livelihoods and communities. Organizations around the world are coming together to find Solutions to limit disruptions to economies and supply chains, and we at Simplebooks would like to play our part, the blog is where we start to make our fight back against the Pandemic. In order to minimize this the government of Sri Lanka with the directives of His Excellency the President had issued certain reliefs schemes to assist businesses through this phase. What is a Working Capital Loan? A working capital loan is a loan that is obtained to support a company’s day to day business operations. The funds obtained through the working capital loans are not to be used for purchasing long term assets or to make investments.
Working capital helps with covering everyday costs such as rent and bills. It is especially useful for seasonal businesses to manage their busy and quiet periods of trading. Described as oxygen to a business, working capital is crucial to a business’ success. Without it, it can be a struggle to undertake the normal activities that are essential to staying in business. All businesses experience shortfalls from time to time, which is why our working capital loans have been designed to meet the needs of these everyday costs. Access finance fast: Because working capital loans are a form of short-term financing, they are much quicker to get approved for. You could receive your loan just 24 hours from approval. No collateral required: Working capital loans are known for requiring very little to no collateral when taking out the loan, which means that your valuable business assets aren’t put at any risk.
Consequently, working capital loans have a higher interest rate than more traditional long-term loans, and usually require some form of collateral or a personal guarantee by the business owner. There are several advantages to taking on a working capital loan. First, it can be obtained relatively quickly, which allows a business to meet a sudden cash need. In short, this type of loan can keep an organization in business when it cannot obtain funding from more traditional sources. Another benefit is that it can provide sufficient cash for a business to keep growing, when its growth might otherwise have been constrained by cash problems. A third benefit is that avoids the need to obtain equity financing; this is importantly in a closely-held business, where the current owners want to avoid bringing in additional investors and potentially losing control of the business. There are also some disadvantages to working capital loans. One is that the owners of smaller businesses will be required to personally guarantee the debt.