Give Us a Call 24/7 to Speak to a Loan Specialist: (866) 526-0238
Give Us a Call 24/7 to Speak to a Loan Specialist: (866) 526-0238

How to Get Short Term Working Capital For Small Companies

Short term working capital is defined as current assets/current liabilities of a company. Generally, when a small business is looking for a working capital loan, they’re looking to add financing that allows them to bridge these differences.

For the most part, when a small business owner receives a SBA Loan for working capital, they use it toward inventory, advertising, purchasing business equipment, making payroll and other operating expenses.

SBA Working Capital Business Loans

The SBA 7(a) program has a number of short term working capital financing options (CAPlines, Export Working Capital Program, Advantage Business Loans and Rural Business Loan Program) that can provide both short-term working capital as well as long-term operating capital.

The maximum amount of working capital provided through SBA loans is $5 Million, with a maximum repayment of around 10 years. Interest rates for an SBA working capital business loan is usually between 6-8%.

Bank Working Capital

Banks generally offer two types of short term working capital business loans: traditional term loans and lines-of-credit. A bank term loan or business line of credit are the most common type of business loans in which the repayment is made over the course of 1-10 years, with an interest rate that is usually between 5-10%.

A bank line of credit for small businesses allows the business to draw on preapproved funds whenever the business owner has the needs, while only paying interest on the amount of the funds they actually use.

Alternative Working Capital Loans

A Mid Prime alternative business loans are perfect for businesses and business owners who lack the pristine credit required by traditional lenders, without having to pay the exorbitant rates/fees that they would bet from a merchant cash advance small business loans.

Rates for Mid Prime alternative loans are generally between 9-15%, with terms that range between 6 months to 5 years. Repayment of this type of loan is usually made either weekly or monthly.

Cash Advance Working Capital

Merchant cash advance business loans (sometimes called business cash advances) are the easiest of all the short term small business loans to obtain. The approval process for an advance business loan usually takes hours, with funding between 1-5 days.

The approval and funding process is not only fast, but its also simple: being that the business owner can get approved and funded without having to meet anyone face-to-face, being the process is frequently handled online, with a quick phone call at funding.

Being that the merchant cash advance lenders have high approval rates (as high as 90%) these lenders are taking more risk than traditional lenders. Therefore, rates for a business cash advance can be much higher than traditional types of small business loans.

Who We Are

GUD Capital is a nationally recognized leader in the financing industry for providing the best business lending solutions available to small and mid-sized businesses. We leverage our network of 4,000 competing commercial lenders to provide your business the largest selection of commercial financing options.

Get Started

Recent Posts

Commercial Loan Broker: Types of Commercial Finance Brokers
July 19, 2017
Utah Business Loans: Financing For Utah Small Businesses
July 18, 2017
Georgia Business Loans: Financing For Peach State Small Businesses
July 17, 2017
Low Doc Business Loans: Financing with Low or No Documents:
July 12, 2017
Arizona Business Loans: Financing For Arizona Companies
July 11, 2017
Investment Real Estate Loans: Financing For Investment Properties
July 10, 2017
Commercial Balloon Refinancing: How to Refinance Commercial Balloon Mortgage
July 8, 2017
Office Building Loans: Commercial Financing and Mortgages For Office Buildings
July 3, 2017
Idaho Business Loans: Financing For Gem State Idaho Companies
June 30, 2017
MCA Split vs. MCA Lockbox: Comparing Different Merchant Cash Advance Funding Payments
June 28, 2017
Purchase of Future Receivables: Selling Future Bank and Merchant Receivables
June 26, 2017
101 Business Loan Tips: Advice For Small Businesses Seeking Loans
June 22, 2017
Types of Commercial Real Estate Loans & Mortgages
June 21, 2017
Merchant Cash Advance Without a Confession of Judgment: Cash Advances with No COJ
June 19, 2017
Two Merchant Cash Advances Stacked? Reasons Business Resort to Stacking Cash Advances
June 15, 2017
Alternatives to Merchant Cash Advances: Non-MCA Funding Options
June 13, 2017
Long-Term Working Capital: Loans & Financing For Long-Term Growth
June 12, 2017
Oregon Business Loans: Financing Options For Oregon Companies
June 10, 2017
How to Use Business Real Estate to Get Working Capital
June 9, 2017
Refinance a Commercial Mortgage: Commercial Real Estate Loan Refinancing
June 8, 2017
Colorado Business Loans: Lending For Colorado Small Businesses
June 7, 2017
Virginia Business Loans: Financing For Virginia Companies
June 4, 2017
Subprime Business Loans: Funding For Companies With Subprime Credit
June 1, 2017
Illinois Business Loans – Financing For Illinois Small Businesses
May 31, 2017
Instant Business Loans: How To Get An Instant Approval For Business Funding
May 26, 2017