1 / 6

Guide to Understanding Working Capital Loan Interest Rates

As a small business owner, itu2019s important to be able to cover short-term business expenses and debts. Since revenues arenu2019t 100% predictable, you need to have a cash flow cushion to withstand unexpected events. The amount you need to operate and withstand these unexpected events is called working capital.<br>http://bit.ly/4eaFG9T<br>

Janes2
Download Presentation

Guide to Understanding Working Capital Loan Interest Rates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Owner’s Guide to Understanding Working Capital Loan Interest Rates As a small business owner, it’s important to be able to cover short-term business expenses and debts. Since revenues aren’t 100% predictable, you need to have a cash flow cushion to withstand unexpected events. The amount you need to operate and withstand these unexpected events is called working capital.

  2. What is Working Capital? Working capital is your current assets minus your current liabilities. Current assets are any assets on your balance sheet that are expected to be sold or used over the next year. They include:

  3. What is the Ideal Amount of Working Capital for Your Small Business There is no single ideal amount of working capital for your small business – it depends on a few variables: What is your type of business? When do you bill customers? What is your projected operating cash flow? How much do you have in current liabilities?

  4. Types of Working Capital Loans There are several working capital financing options for small business owners. Some loans have an explicitly stated working capital loan interest rate for monthly payments. SBA Loans Term Loans Business Credit Card Business Line of Credit Merchant Cash Advance Invoice Financing Invoice Factoring

  5. The Bottom Line Your working capital needs are likely to be short-term, so it’s easy to overlook the interest rate being paid on borrowed funds. However, the interest rate on some types of working capital funding solutions may be very high. You also may have to secure working capital financing repeatedly. The right type of working capital financing depends on your small business’s situation and current business needs. In any case, you don’t want to wait long to get working capital funding. With Biz2Credit, you can get competitive working capital loan rates and receive funding in as little as 72 hours.

  6. Thank You Biz2credit.com By Nick Perry Source: https://www.biz2credit.com/working-capital-loans/a-business-owners-guide-to-understanding-working-capital-loan-interest-rates

More Related