3 Kinds of Small Business Working Capital Loans

small business working capital loans

Working capital is needed throughout all stages of business in order to keep up with consumer demands and expand your operation.

With adequate funding, you can afford to invest in the best merchandise, enhance your marketing campaign, and cater to a wider demographic of customers.

Working Capital Financing For Small Businesses

For small businesses, funding options can be limited, as smaller companies experience greater difficulty when applying for commercial bank loans.

In these instances, alternate lenders and other creative financing options can help to fill the funding gaps and provide more accessible financing solutions to businesses.


Crowdfunding provides a unique alternative to small business working capital loans. It’s ideal for new entrepreneurs who have a creative business proposal but are having difficulty sourcing startup or expansion funds.

Crowdfunding sites provide entrepreneurs and inventors with a global platform where they can pitch their business concept to millions of people worldwide. They pre-sell their products or services to raise the cash flow needed to implement their business plan.

After launching, the money is repaid by supplying the pre-sold products to investors. This not only offers a convenient method for rapidly sourcing mass funds, but it enables you to pre-market your concept to millions of consumers, thereby significantly enhancing your potential success rate as a company.

Commercial Real Estate Loans

For businesses seeking to expand their operations, commercial real estate loans can help you to secure a new property. Proper financing is the greatest barrier a business experiences when seeking to expand their company, and a real estate loan can resolve this setback quickly.

Commercial real estate loans are issued by banks and can be used to purchase land or existing commercial property. Loan amounts range from $25,000 to $2 million, enabling businesses to completely pay off the property in advance, thereby minimizing their recurring overhead costs.

For those who fail to qualify for bank loans, the U.S. Small Business Administration also provides real estate loans of up to $350,000. Their loans have fewer eligibility requirements, making them more accessible to the average businessperson.

Equipment Loans

For businesses that rely on heavy machinery, vehicles, or equipment to perform the basic duties of their job, launching or expanding a business can prove costly. Equipment loans are usually issued through banks, but for those who don’t qualify, the BBA provides equipment loans with more lenient applicant requirements.

Many banks also offer express loans that enable businesses to access smaller loan quantities with fewer regulations. An express equipment loan is typically issued for $100,000 or less and comes with a three to six-year repayment plan.

In addition to buying equipment outright, some businesses opt for leasing their equipment, which provides an attainable alternative for new businesses that have yet to create returns. After generating substantial profits, your business can purchase the leased equipment at the current fair market price.

In order to expand your business and invest in the future of your company, proper investment capital is critical. Equipment and property are two of the largest expenses involved in business management, and they provide the biggest financial hindrance for businesses that are seeking to expand their operation.

With accessible equipment and real estate loans available, you can access the financing you need to expand your business venture and serve a wider demographic of people. For all your working capital needs, contact Credibly.