Working capital loans are designed to help your business manage everyday operations smoothly. This page will give you everything you need to know about working capital loans and how it can benefit your business.
Even the most successful businesses can face challenges when cash is tied up in everyday expenses, affecting profitability. These expenses, known as working capital, can sometimes require short term funding. If you’re looking to ease your cash flow or access finance to keep things running smoothly, a working capital loan could be the solution you need. If you’re ready to apply for a working capital loan, you can search and compare from 100+ lenders with Capitalise today.
A working capital loan is a short term type of funding, designed to help businesses cover their everyday operational expenses, such as payroll, inventory purchases, rent, and utilities, during periods of limited cash flow.
It is typically used to support the business through seasonal slowdowns, temporary revenue gaps, or while waiting for customer payments, rather than for long term investments like equipment or property.
This type of loan helps ensure that a business can continue running smoothly, meet its financial obligations, and take advantage of short term opportunities, even when cash flow is temporarily tight.
A working capital loan can be used by any business looking to manage their operational costs. It’s a popular option for businesses with seasonal fluctuations, where there may be a gap in cash flow to cover operational costs in certain months. A working capital loan could be used for almost any business purpose, for example you could use it to:
When you need short term funding quickly, a working capital loan can offer an easy way to access capital. It provides the necessary time to focus on what matters most, giving your business the best possible chance of success.
These loans can provide quick access to funds
Working capital loans give you the flexibility to use the funds in many ways
Ensures you have enough capital to cover unexpected expenses
The amount you can borrow depends on various factors including:
To get an idea of how much you can borrow, you can use our business loan calculator. It will show you potential monthly repayments, helping you see what fits within your budget. To get a more accurate idea of your borrowing capacity, you can search for funding with capitalise to see what you could be eligible for.
Applying for a working capital loan is easy with Capitalise. Here’s a step by step of what you can expect from the process:
1. Assess your business’ needs
Determine how much you need and what you’ll use the loan for. Having a clear purpose and idea of how much you want to borrow will help in the application process.
2. Check your business credit score
Lenders will assess your business’ creditworthiness. A good company credit score can help you secure better terms and rates, so it’s important to keep track of it if you’re considering applying for a loan.
3. Gather some documentation
Be prepared to provide documents such as your annual financial statements and business bank statements.
4. Apply through our platform
Complete your funding search with Capitalise to compare from 100+ lenders. Once you’re ready you can apply to up to 4 lenders in one application.
5. Get a decision
If approved, you can compare your offers from multiple lenders and see which best suits your business.
6. Get cash in your account
If you choose to accept, you’ll need to provide proof of ID. Once approved, you can get funding in your business account in as little as 48 hours.
Yes, some lenders specialise in offering loans to businesses with poor credit, although you should bear in mind that the terms may be less favourable due to a higher risk to the lender.
It depends on the lender and loan type. Some loans are unsecured, meaning no collateral is needed, while others may require assets and property as security.
The term length of a working capital loan can vary. Typically, these loans range from a few months to a few years, with common terms being 6 months, 12 months, or 24 months. The specific term will depend on the lender and the loan agreement.
Many lenders allow early repayment, but it's important to check if there are any prepayment penalties. Early repayment can save you on interest costs.
If you need short term funding to cover operational expenses or manage cash flow gaps, a working capital loan could be a good option.
The approval and funding time can vary depending on the lender and the type of loan. At Capitalise, we work with many lenders with fast approval times, meaning you could get funds in as little as 48 hours.
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