Working Capital Loans for Small Business

Working capital loans are short-term financing that can help your small business pay for things such as operational costs, rent, payroll, or inventory. Working capital loans carry short repayment terms and are not typically used for long-term investments, such as real estate or new equipment.

Leanders offer the lowest annual percentage rates on working capital loans, but they also tougher to qualify for when it comes to credit score and revenue requirements. If you don’t qualify for a bank loan or if you need fast working capital, contact Kapital Venture to lend a helping hand.

Types of working capital loans

Term loans: While term loans are commonly used for financing an expansion, they can also be used for short-term working capital. Term loans provide a sum of cash upfront that is repaid over a set period of time with fixed, equal payments.

Business lines of credit: A line of credit provides more flexibility than term loans, as you get access to funds up to a credit limit and only pay interest on what you’ve borrowed. You can draw and repay funds as often as you’d like, as long as you make payments and don’t exceed your limit.

SBA loans: These loans are guaranteed by the U.S. Small Business Administration and issued through participating lenders. SBA loans provide up to $5 million for working capital, expansion, or equipment purchases. Learn More about the current PPP loans here.

Invoice factoring: If you have customers with unpaid invoices, this type of financing lets you turn the invoices into fast working capital. The factoring company buys your invoices for an upfront payment (minus a fee), and it gets paid when it collects from your customer.

To learn more about applying for a loan for your small business call our office today to speak with a business development manager today, or fill out this form and fax it to the number at the top of the application.