Easy Capital Loans
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Helping Business Owners since 2007
What Are Working Capital Loans?
Before diving into an explanation of working capital loans, it’s important to understand working capital basics.
Working capital refers to the money needed to cover everyday operating expenses in your business. Typical expenses covered by working capital include payroll and rent. These are the day-to-day costs of keeping your business running.
A working capital loan gives businesses the cash to cover these ongoing, everyday operational costs. A working capital loan can come in various forms, including a short-term working capital loan, merchant cash advance on credit card sales, invoice factoring agreement (on unpaid invoices due), SBA loans, or a business line of credit.
Working capital loans may also be known as business capital loans, operating capital, or cash flow loans.
How Do Small Business Working Capital Loans Work?
So how does a working capital loan work? Though working capital business loans can come in many forms and from online lenders or a traditional financial institution like the small business administration in a few limited cases, each version has a few things in common. Unlike a more traditional bank loan, small business owners can access even the best working capital loans with a subpar personal and business credit score and less than one year in operation. You don’t need collateral or even a personal guarantee. Due to these loose requirements and the shorter terms, interest rates tend to run higher.
Since working capital financing is more accessible through online lenders than traditional financial institutions, companies don’t have to specify how they plan to use the money. Thus, they would recommend the repayment terms that make the most sense for your cash flow and the problem at hand.
MAX FUNDING AMOUNT
$1K - $5M
FACTOR RATES
Starting at Prime + 2.75%
TERM
3 months - 10 years
SPEED
1-3 Business Days
ANNUAL REVENUE
$180k +
Who Qualifies For Working Capital Loans?
CREDIT SCORE
550 +
TIME IN BUSINESS
2YRS +
How To Apply For Working Capital Loans:
The application process may be slightly longer or shorter for different types of loans. However, all variations require very little paperwork, and you can get funded in just a few business days. Here’s how to get started:
Step 1: Choose Your Working Capital Loan
We usually recommend the loan options that feature the most uncomplicated repayment terms for your cash flow. This depends on the length of your cash flow gap and how quickly you can pay off the loan.
Step 2: Gather Your Documents
This step depends on the type of loan options you’re applying for. Here are the documents and information you may need to get started for each option:
-Voided business check
-Bank statements (3 Months)
-Drivers license
Step 3: Fill Out Application
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Step 4: Speak to a Representative
Once you apply, a representative will contact you to explain the repayment terms, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees from lenders during repayment.
Step 5: Receive Approval
For most loan products, credit approval only takes a few days. Depending on the type of loan, funds should appear in your bank account in 1-3 business days for most funding options.