WORKING CAPITAL LOANS
A great way to help your business during seasonal ebbs and flows is with a working capital loan. These short-term solutions can be used for things like paying bills or stocking up on materials, so you’ll never have an issue when the next season roll around.
Overview
Unfortunately, retailers are at the mercy of shopping seasons. If their revenue follows a yearly cycle, then they may find themselves low on cash during holiday periods when fewer people shop and spend money compared to other times throughout the year.
It can also affect suppliers’ stocks as well, which means less raw goods available for production next time around (which could lead into problems servicing delivery schedules). And while some businesses might be able manage without certain monthly expenses like utilities or leases continuing every single month over winter break others won’t have any choice but reduce staff.
Working Capital Loans can be a lifesaver for businesses in seasonal industries. They provide the stability and flexibility that’s needed to operate throughout any year, without being limited by real estate or equipment loans (which often have restrictions). There are many types of working capital lending options available from secured financing with flexible terms all the way up unsecured personal lines of credit perfect if you just need some extra cash now.
TERM LOANS
There are many different types of loans with varying features. Some have set maturity dates, floating rates or fixed interest rates and monthly repayment schedules while others require quarterly payments throughout the year.
LINE OF CREDIT
With lines of credit, you can borrow as much or little money whenever it is needed.
INVOICE FINANCING
When a company needs short-term financing, they often go to their suppliers and ask them for an advance on future invoices. This is called factoring because the process involves Factors (suppliers) who provide cash up front in exchange for promises that will be fulfilled at some point in time after receiving payment from customers later down the road.
LOAN HIGHLIGHTS
- Working capital loans can be a great way to smooth out seasonal cash flows.
- Loans can be used for any purpose, and they don't have to fit into one specific category.
- Working Capital Loans are a great way to get the funds that your business needs. These types of loans include term, lines of credit and invoicing finance - all with different features but they can help you meet short-term goals without putting too much strain on yourself or any other aspect within operations.
- Loans are secured with collateral or based on the borrower’s creditworthiness.
Disadvantages
- Borrower’s credit history is often tied to loan approvals.
- Unsecured loans are only available to businesses with a high credit rating.
Advantages
- Working Capital Loans are among the most flexible financing options available.
- Interest rates on loans can be much lower than credit cards, which is great if you're looking for an affordable way to borrow money.
- Loans can be obtained in several different forms, depending on what you need the money for.
- Financing is often approved much faster than traditional loans.
Quick Application
Use our five minute application to get a clear understanding of your funding options, terms, and interest rates.
