What You Need to Know About Working Capital Funding & Loans
Being a business owner, you know things can change in an instant.
Today’s fast-paced economy requires you to know the ins and outs of the business world. You need to be a quick learner to stay up to date on new trends, best practices and your industry’s latest business equipment all while running your business as efficiently as possible.
Present-day customers, regardless of whether you run a B2B or B2C company, are used to near instant gratification. Services like Facebook, SMS messaging and mobile apps offer consumers fast responses and quick service. To compete in this new, in an instant business environment, today’s small business must be adaptable.
As an experienced business owner, you know things can change in an instant; just as they have with modern communications tools. Expecting the unexpected is part of the job – and so are unwelcomed expenses.
Sometimes, these unexpected costs can put you and your business in a position where you are short on working capital. This can be an uncomfortable situation for some business owners, but the good news is there’s a now a quick way to get the instant capital you need fast while you recover from the initial hit of these expenses.
Working Capital Funding: Operating Without The Headache
Chances are, you’re a business owner that hasn’t yet come to the realization that you’re in need of an increase in working capital. So, you may be wondering – how much working capital does my business actually have? We’re sure that you will be happy to hear that determining that number is actually a lot simpler than you’d imagine.
The formula for working capital is quick and straightforward:
Current Assets – Current Liabilities = Working Capital
Working capital, which is determined by the equation above, is the amount of cash a business has on hand for daily operations.
When the equation results in a positive number…
Businesses should have enough cash to pay off debts at their expected rate, while also netting an income.
But, when the equation results in a low or negative number…
The business could be in danger of failing. This could be a result of a handful of unexpected costs over a short period of time or if the business is holding on to too much inventory.
Working Capital Funding vs. Traditional Loans
Fast business capital can be the difference between paying on time and racking up overdue and overdraft fees by the dozen. Big banks, because they are so wary of working with small businesses, don’t always offer the best solutions for companies trying to escape financial turmoil.
If a company has fallen into the danger zone, it is in a working capital deficit and may need help getting out it. Many business owners turn to traditional business loans when they’re in need of some fast, quick cash.
But, big banks are known for giving small business a hard time when it comes to meeting the qualifications for a bank loan. That’s where instant small business funding companies like Fast Capital 360 comes in.
Finding instant working capital loans is easier than ever before. The same communications tools consumer use to find the information they need, as quick as they can, also gives small businesses a platform to showcase their best-in-class offerings.
Where banks are unable to provide short-term business loans, Fast Capital 360 is able to help small and medium-sized businesses climb out of debt with the best fast business funding solutions available.
|Funding vs Loans||Fast Capital 360 Funding||Traditional Bank Loans|
|Application Process||Takes the average user less than 10 minutes||Extensive paperwork and identity checks|
|Approval Status||Find out if you’re approved in as little as 60 minutes||Can take up to 90 days to find out if you are approved or not|
|Receive Your Funding||Receive your funding in one business day||Can take nearly six months to process|
|Contract||Clear terms and agreement||Confusing contracts and hidden fees|
Types of Working Capital Financing
There isn’t just one single working capital financing option that fits every business owners’ needs; in fact, there are several you can choose from.
The four most popular forms of working capital funding are:
- Business Line of Credit: A line of credit allows you to withdraw funds when you need it, so you only have to pay interest on the credit that you use.
- Short-Term Small Business Loan: A short-term business loan is simply a traditional loan with a short amount of terms.
- Trade Credit: Trade credit is an agreement in which a supplier allows a customer to purchase goods on their account if the cost is paid back within an allotted number of days.
- Factoring: Factoring, or accounts receivable financing, is when a factoring company buys a business’ invoices at a discount and then collects the full amount from the business’ owing customers.
If any of these solutions sound ideal for your business’ financial situation, then working capital financing might be the right funding solution for you.
What Are The Requirements?
Fast Capital 360 provides small and medium-sized businesses with unsecured business funding so that they can continue to operate the way they have grown accustomed to. Unlike traditional loans, this type of funding doesn’t require you to pledge personal assets. Instead, businesses make daily, weekly or monthly payments at a quicker rate so that debt is on the books for a shorter period of time.
Deciding to take out a working capital loan is a big decision for business owners. We’re here to help you make sense of every option available to you, even if it isn’t one we offer, like a small business loan through a traditional bank.
Our approach to funding working capital allows us to evaluate the bigger picture of a business and decide what they qualify for. We always want to make sure our instant approval process leads you to finding the best options for your small business.
Fast Capital 360’s evaluation process takes the following business items into account at the time of application:
- Verifying that your business has been in operation for at least six months prior to applying for working capital
- Minimum $120,000 operating revenue
- Up-to-date bank statements from the four most recent months, month-to-date banking information and lending history
- A personal credit score of 520 or higher
Even if a small business doesn’t meet one of the above requirements and has been turned away from a traditional loan, Fast Capital 360 may still be able to help by creating a program that best suits a business’ financial situation.
Dedicated to Small Business Owners
We want to make the process of finding funding alternatives to instant online business loans available to as many companies as possible.
In fact, we believe in this idea so much that we recently reduced the minimum operating revenue by $30,000. This allows more small businesses access to the best instant small business funding available.
If you’re still unsure if a working capital funding is the best option for you and your small business compared to a loan, don’t fret. Feel free to give one of our business advisors a call today to learn more about working capital loans and our other financing options. We are dedicated to making the business funding process as hassle-free as possible, so you can expect the utmost transparency regarding your questions and concerns.
For more information on why Fast Capital 360 is the best choice for quick working capital, contact us today 800-735-6107!