At Premier Business Lending, we see and believe in the benefits of working capital loans for your business. Working capital is a short-term loan that is very flexible and offers a variety of financing options to help you achieve your goals.
There are many types of businesses that regularly utilize this kind of loan, and we’ve put together a list of three of the most common purposes businesses choose to borrow working capital.
1) Unforseen Circumstances
Sometimes things break, and usually it’s at the worst possible time. It doesn’t matter if it’s a vehicle, network server, or table saw — a working capital loan can help your business quickly recover from the loss and replace your broken equipment.
Inventory is expensive, and often the only way to mitigate a portion of that cost is to buy in large quantities in order to receive volume discounts. What that means for you is a large upfront cost that may tie up a significant portion of your existing capital.
With a working capital loan, you won’t have to choose between buying inventory or paying bills, you’ll be able to comfortably do both. This will help your business to grow and won’t put unnecessary strain on your company’s finances.
3) Business Expenses
Do you want to attend a trade show to help promote your business? Maybe even have a booth at the event? Do you want to hire new employees or relocate to a new office? All of those expenses and many more can be prohibitive to a new or small business.
Once again, a working capital loan is a great way to finance large expenditures that you wouldn’t be able to afford otherwise. By enabling your business to buy the products and services it needs to grow to the next level, you can help secure your business’s future.
Do You Need Working Capital?
If your businesses is faced with one of the challenges mentioned above, consider talking to an experienced loan professional who can help you evaluate your needs and determine if a working capital loan is the best course of action for you.