How to grow your business with working Capital

To increase total capital of your business’s net worth, increase the working capital.  This is the amount of money available between assets and liabilities.  When there is a proven track record of successful revenue creating processes, many business owners find it useful to borrow money to fund expansion of their operations. 

Going to open a new location? 

Going to start a new product line?

Borrowed capital gives the business an immediate boost to expand in a rapid way and is ideal when the funds are tripled in the amount of time for the borrower.  Furthermore, when you borrow and use the funds in a strategic way the returns and rewards are well worth it.  This puts you in a better position to do what you do best. 

A shortened schedule for repayments means you will be paying less over time in comparison to a bank loan. This may be helpful to increase that inventory that is moving and grow your business in the way you have envisioned. 

Do you have a new product on the market?  Many businesses have expanded technical requirements to keep up with regulations and compliance for covid related changes. 

You can also use the Working Capital to start an advertising campaign to increase visibility and market appeal.

When you add working capital in your business you are increasing the flow of cash that goes through your accounts each month.  The more the money flows through, the better your accounts look for investors and the better you can make your appearance for customers.

A Working Capital Loan has a repayment period of 6-24 months. These are used by many businesses to keep or expand inventories, hire key employees and increase operations. 

This is good for businesses who are in trade, and have cash sales such as supermarkets who often turn their inventory.

When businesses increase their working capital they are using these funds to meet short term capital requirements.  This is perfect when a business has multiple account receivable collection invoices due within 30 days to show ability to fulfill payback of the loan. 

Enjoy a discount for early payment when paid in full, something which most banks do not offer. 

To recap, some of the benefits of increasing your working capital is that you can increase the inventory running through your business.  This is often used by manufacturing, retail and convenience stores and locations with high inventory and high cash turnover.

To make the repayment more productive there are weekly and daily (fact check) options.  Business loans can go through in as little as 3 days from application.  In addition, the interest paid on the loan is a tax write-off expense for your business.

Whether this is possible for you may be reviewed in the complimentary consultation with a financial professional. 

https://www.tutor2u.net/business/reference/working-capital-net-current-assets

https://www.investopedia.com/terms/w/workingcapital.asp

https://efinancemanagement.com/working-capital-financing/working-capital-cycle