It’s no secret that small businesses are the backbone of the American economy. Accounting for over half of all U.S. sales and providing 55% of jobs, small businesses are essential to our nation’s welfare.
Running a business isn’t easy though, especially when it comes to funding where the options can be overwhelming. Working capital loans are a great choice to help you cover the day to day expenses your company faces. Below is a breakdown of why working capital loans for small businesses can help with funding in the short-term if you’re a small business owner:
Quick funding
Sometimes you need money… and fast. Small business working capital loans can happen quickly, helping you meet your deadlines or goals by avoiding the paperwork and red tape typically associated with bank loans.
High approval rate
Working capital business loans are often granted regardless of credit scores, past rejection from banks or tax liens. They’re also perfect for businesses that are coming out of bankruptcy.
No upfront collateral needed
Many lenders require collateral in exchange for a loan. Fortunately, if you are unable to provide cash or assets upfront, you can qualify for unsecured business loans. Interest rates will be higher but these loans are ideal for business owners that need funding but cannot afford to pledge collateral.
The U.S. Small Business Administration has cited insufficient capital as one of the biggest reasons businesses fail (second only to lack of experience). To avoid financial struggles and for help in finding working capital loans for small businesses, the SBA provides a “Loans and Grants Search Tool” on their website at https://www.sba.gov/loans-and-grants.