What You Need to Know About Working Capital Funding & Loans
Being a business owner requires you to know the ins and outs of the business world. You have to stay up to date on new trends and business equipment all while running your business as efficiently as possible. As an experienced business owner, you know that expecting the unexpected is part of the job; but sometimes, there just isn’t any planning for sporadic 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 way to get the capital you need fast while you recover from the initial hit of these expenses.
Working Capital Funding: Operating Without The Headache
The formula for working capital is straightforward:
Current Assets – Current Liabilities = Working Capital
Working capital, 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. On the flipside, when a company has been faced with several unexpected costs, or makes a mistake like taking on too much inventory, the end of that equation can become a less desirable number.
Working Capital Funding vs. Traditional Loans
If a company has a 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 cash, but big banks are known for giving small business a hard time when it comes to qualifying for these types of loans. That’s where small business funding companies like Fast Capital 360 comes in.
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 fast business funding.
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.
|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 your 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|
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 working capital 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.
- At least nine months in business prior to applying for working capital
- Minimum $150,000 operating revenue
- Up-to-date bank statements 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 works for the given financial situation.
If you’re unsure if a working capital funding is the best option for you and your small business compared to a loan, give one of our business advisors a call today to learn more about financing options.
For more information on why Fast Capital 360 is the best choice for quick working capital, contact us today!