Business loans for working capital in Boston

Working capital loans are loans that are geared to small businesses to help them gain the funding they need to meet short-term needs.

You are not required to provide a percentage of your profits.

Rather, the financing provider will offer you a fixed interest rate that never fluctuates over time. The loans are provided on a short-term basis with working capital loan terms customized to your available budget. They can help you cover the continued operational costs of your business, without accruing long-term debts in the process.

Working capital loans help small business owners like you meet operational expenses, such as payroll, stocking inventory, and marketing.

These short-term loans can help stabilize cash flow and meet immediate business needs.

They are ideal for business owners who need fast and flexible, short-term funding.

With a working capital loan, you can cover the daily operational costs of your business, including equipment costs, rental fees, and hiring and training staff. This is a great solution for small business owners because it enables you to get just enough money to meet your needs while providing flexible payment plans you can pay off over time.

Also, you can often get a working capital loan as fast as a couple of hours, enabling you to get what you need right away. The speed to funding makes working capital loans an ideal option for handling unforeseen business expenses.

However, working capital loans can come with higher interest rates, and require collateral or a personal guarantee. These are considerations to take into account prior to applying.

The purpose of a working capital loan is to have funds available to pay your business' financial obligations during a slump in revenue or to meet unforeseen needs.

Working capital loans can cover:

• Payroll for your employees and staff
• Utilities costs
• Mortgage or rent payments for the business
• Buying inventory or materials required for you to meet customer demand
• Repairs or replacement of required equipment or tools

Before looking for financing, take a moment to review your business's finances and determine what you're looking for. How much capital do you need? How fast do you need it? How financially healthy is your business?

This will help you understand what kind of financing provider you might want to look for. Traditional lenders may be able to provide lower rates, but have much higher qualifying criteria.

Alternative lenders have lower barriers to entry and can provide capital quickly, but may have higher rates.

As you look for financing providers, look for someone who will be a good partner to you. These providers will often take the time to understand your goals and answer your questions.

Working capital loan eligibility requirements can vary between lenders. In today's economy, lenders need assurance in the businesses ability to satisfy the debt, so collateral of up to 90 percent of the loan amount is required.

Qualifications will depend on your income and projected business earnings, with loan amounts and repayment terms varying based on eligibility.

While they have strict eligibility requirements, they are easier to qualify for than traditional business loans, making them a good alternative if you've been denied for traditional loans.

At Credibly, you will generally need:

• To be operating in the United States
• 6+ months time in business
• $15,000+ in monthly revenue**
• To deposit revenue in a business bank account
• A credit score of 500+***

Contact Credibly to learn more.

The formula for calculating working capital is current assets – current liabilities = working capital

Working capital is the difference between a firm's current assets and current liabilities.

Current assets are the tangible and intangible items that your company owns.

Current liabilities include all of the debts and expenses firms expect to pay within one business cycle.

Because working capital is the money you have available to meet your short-term needs, it is critical for sustaining operations.

It is also a measure of a business's ability to pay off short-term business expenses or debts.