Simply put, working capital is what a business uses in its day-to-day trading operations, calculated as the current assets minus the current liabilities. When a business finds that it can’t meet these day to day obligations, they start looking for a working capital loan.
Types of working capital loans we provide
There are many types of working capital programs available. We have broken it down by type of credit needed.
Working Capital Loans Based On Your CLIENTS Credit – Not Yours
Factoring – this is when you use your accounts receivable as the basis of the loan. Many of our clients are in the employment industry. They have to pay their employees weekly but get paid by their clients monthly. They use factoring to get paid up to 95% of their outstanding invoices upfront. The factoring company collects the money from their clients when the invoice is due. The factoring company takes what they advance along with their fee. They return the balance to the company. But factoring is not limited to ONLY employment agencies. We have also helped customers in the manufacturing industry, trucking and construction.
Factoring doesn’t use your credit for approval. We look at the credit of the companies that you are doing business with and decide if we want to buy that invoice based on THIER credit and payment history. This makes factoring a great option for business owners who may have been turned down for traditional working capital loans due to their low credit score.
Factoring also doesn’t have a time in business requirement. It’s open to start up businesses and well-established businesses.
Do you need a working capital loan?
This loan is for businesses TWO YEARS OR OLDER UNDER THE SAME MANAGEMENT . Please read thru the requirements listed below and if you qualify please fill out the form and representative will contact you within 24 hours.
Working Capital Loans
- 2 years time in business REQUIRED
- Minimum credit score 550
- Business Bank Account must have a daily average balance of $5,000
- Annual Revenue $300,000
- Maximum Loan Amount $50,000
- Approval Amounts are generally 5 – 6% of Annual Revenue
- Repayment Terms 6 – 12 months
- Absolutely NO startups
The Following Companies Cannot apply:
- State & Government Agencies
- Mortgage Brokers / Real Estate
- Marinas / Boat Dealers
- Home based businesses (excluding internet)
- Gambling
- Family Activity Centers
- Construction Related Industries
- Gyms (Adult & Kid)
- Attorneys & Accountants
- Adult