Working Capital Loans for Small Businesses
Working capital loans provide short-term funding to cover the everyday expenses of running a business.
A working capital loan helps small business owners meet daily operational expenses, like payroll and purchasing additional goods or materials. These short-term loans can help stabilize cash flow and meet immediate business needs. Working capital loans are not ideal for long-term investments or growth because they have shorter repayment terms.
Small business working capital loans are perfect for healthy businesses with steady revenue. Working capital loans are ideal for business owners who need flexible, short-term funding without the hassle. With shorter payment periods and flexible usage, Credibly’s working capital loans provide speed, simplicity, and versatility to meet the funding needs of small businesses. Funds are automatically deposited into your business bank account with repayments already set up, so you can focus on running your company.
Working capital is the difference between a firm’s current assets and current liabilities.
Current assets are the tangible and intangible items that your company owns and can be easily turned into cash within one business cycle. Along with your checking and savings account, this includes things like accounts receivable, highly liquid marketable securities, inventory, and other shorter-term prepaid expenses.
Current liabilities include all of the debts and expenses firms expect to pay within one business cycle. This typically includes all of the normal costs associated with running a business: utilities, rent, matierials and supplies, interest and principal payments on debt, accounts payable, and accrued liabilities and income taxes.
Working capital loans are a perfect way for business owners who need flexible, short-term funding to grow their business without having to make tough decisions as to how they should allocate funds. With shorter payment periods and flexible usage, Credibly’s working capital solutions provide speed, simplicity, and versatility to meet the funding needs of small businesses. Funds are automatically deposited into your business bank account with repayments already set up, so you can focus on running your company.
Looking to increase staff or meet payroll? Working capital loans ensure that you have enough cash to pay employees, maintain operations, and scale your business.
Ready to launch a new marketing campaign or initiative? Working capital loans can help you go to market faster and help you meet increased demand.
Need to stabilize your cash flow? These business capital loans are ideal for ensuring that you always have enough liquidity to maintain operations.
To start the loan application process, follow the “Get Started” button and enter some basic business information.
After your application has been processed, a business consultant will reach out to discuss your loan options.
6 to 18 months
As low as 1.15*
Daily or weekly**
Working Capital Loans are available to businesses throughout the U.S. which meet certain criteria:
With an online application, application review within one business day and funding delivered straight to your bank account, the Credibly experience is designed to be intuitive for business owners.
We design customized capital solutions to ensure your business gets the right funding type and amount for your business needs and goals.
Credibly business experts are standing by to help you, from the first time you submit an application until you pay off your final business loan with Credibly.
Payments are automatically remitted from your bank account, so you can focus on running your business.
Working capital loans are short-term small business loans and designed for companies who need capital quickly. While this type of financing is great for stabilizing cash flow and getting you back on your feet quickly, it may not be the best option for long-term growth initiatives due to the shorter duration.
Working capital, also known as net working capital (NWC) is the money that businesses use to support day-to-day operations. As the difference between current operating assets and liabilities, working capital is a measure of a company’s liquidity, operational efficiency, financial health, and the ability to pay off its debts within a year.
Without enough working capital, a business cannot continue to operate. Maintaining healthy working capital allows you to seize an opportunity as it arises and also provides a safety net to absorb possible bad debts, stabilize cash flow, or provide emergency relief when needed.
The formula for calculating working capital is: Working Capital Formula = Current Assets – Current Liabilities. Basically, working capital is the difference between a firm’s current assets and current liabilities.
Current assets are the tangible and intangible items that your company owns and can be easily turned into cash within one business cycle. Along with your checking and savings account, this includes things like accounts receivable, highly liquid marketable securities, inventory, and other shorter-term prepaid expenses.
Current liabilities include all of the debts and expenses firms expect to pay within one business cycle. This typically includes all of the normal costs associated with running a business: utilities, rent, materials and supplies, interest and principal payments on debt, accounts payable, and accrued liabilities and income taxes.
Because working capital is the money you have available to meet your short-term needs, it is critical for sustaining operations. It is also a measure of a business’s ability to pay off short-term business expenses or debts.
Operating working capital (OWC) is the measure of a business’s liquidity whereas net working capital (NWC) is the sum of all company assets minus all outstanding liabilities. Operating working capital is all assets, minus cash and securities, minus all short term, non-interest debts.
The four components of working capital are cash management, receivables management, inventory management, and accounts payable management. Investors and analysts assess these aspects of your business to evaluate a company’s cash flow.
Working capital loans are short-term small business loans and designed for companies who need capital quickly. This type of financing is great for stabilizing cash flow and getting you back on your feet quickly.
Working capital loans may not be the best option for long-term growth initiatives due to the shorter duration.
Many new businesses, or startups, struggle with cash flow and maintaining adequate working capital. However, most financial institutions have revenue requirements to qualify for their business funding options, including working capital loans. This is to protect both the lender and the borrower and ensure that the borrower has adequate sales to meet debt obligations without bankrupting the business.
However, some companies that consider themselves a startup may actually have adequate funds and credit to qualify for loans, especially from online lenders. If your balance sheet shows regular revenue of over $15,000 and you have been in business for at least six months, you may qualify for a Credibly work capital loan.
Flexible financing and repayment based on what you can afford
Long-term loans to help your business grow and expand
Business lines of credit provide the most flexible access to working capital, whenever you need it.
Still looking for the right fit? Check out all of Credibly’s business financing options.
When you’re running low on cash and need to support your operations, access to fast, flexible business financing is crucial. To get started, fill out our online prequalification form or call our Customer Success Team at (888) 991-3954.
* Weekly payments for working capital loans have different minimum qualifying criteria than the daily payment option.
** $15K+ avg. deposits for a three-month average and the most recent month.
*** Rates are included in your daily payback quote to simplify repayments and account monitoring. Rates, pricing, requirements and other terms and conditions subject to change without notice.
**** Bank statements must be from the business banking account for the business receiving funds.