Working capital financing provides small and mid-size businesses with flexibility in terms of how to grow their business.
As a small business owner, you know firsthand that having access to capital is essential for running your business. Without it, you really don’t have a business. However, traditional financing options from banks can be hard to come by, especially for small to mid-sized businesses. Fortunately, there are funding options for businesses, including working capital financing. This begs the questions, what are the popular uses for workin
Many small to mid-sized businesses represent more risk than what banks want to take on. That’s where working capital financing comes in. An increasingly relevant definition of working capital financing is money that is readily available for the day-to-day operations of your business. As a result, working capital financing should be able to be used for any number of purposes. Working capital financing from Zip Capital Group can be used for any number of purposes needed to run day-to-day operations.
At Zip Capital Group, we understand the importance of working capital financing for small businesses. We offer financing solutions that require little paperwork and provide fast funding. With our working capital financing, you have a lot of flexibility as to how you can take your business to the next level.
What are popular uses for working capital financing?
Here are some specific ways that small business owners can use working capital financing:
- Manage Cash Flow: Use working capital financing to cover necessary operating expenses during periods when your business experiences a cash flow crunch. Whether you need to meet payroll, keep the lights on, or pay your rent or mortgage, working capital financing is a tool to keep cash flow volatility stable.
- Purchase Inventory: Having the capital can give you the opportunity to take advantage of special pricing or discounts for early payment. Similarly, you need cash to be to purchase product, inventory, or additional stock or inventory for special orders.
- Bridge Payment Delays: Working capital financing can help to bridge the gap when customers are late in paying their bill, making it easier to stay current on payments. When the economy slows down, many businesses will have problems paying their accounts payable, impacting your cash flow. Working capital financing ties things over until you get paid.
- Pay Seasonal Expenses: Working capital loans are ideal for covering annual expenses, like seasonal inventory and employing short-term workers before the busy season. Working capital loans are ideal for beefing up staffing and inventory in preparation for a busy “selling” season.
- Cover Seasonal Shortfalls: Small businesses in many industries can make most of their income in only a few months out of the year. Working capital financing can pay the debt incurred as a result of inventory purchases or staffing needs until your clients can pay you.
- Launch a Marketing Campaign: Working capital loans can be used to fund marketing campaigns to break into new markets, or to add e-commerce capabilities to your website. Working capital financing can fund the activity needed to break into new markets until you can land new clients.
- Hiring and Employee Expenses: Many businesses can’t grow without the help of valuable employees. Working capital financing can help fund new or highly qualified employees to grow your business.
- Expansions or Renovations: Use working capital financing to fund a new outdoor eating patio or a new location for your business. New business from an additional location or increased capacity will help your business grow.
- Taxes: Use working capital financing as an alternative for funding property tax payments or bridging your cash flow during tax season. Working capital financing can take care of taxes so that the money you make from the business can continue to be productive.
- Unexpected Expenses: Machinery breaks down, weather can be volatile, and disaster can strike at any time. Working capital financing can help pay for unexpected expenses so that your business can keep growing.
- Access to Expertise: Expert consultants and specialists can provide your growing business with the strategy, or expertise to get to the next level. Working capital financing can be used to pay for the expertise needed to pay for “secret sauce” that helps your business stand out.
- Hardware and Software: New hardware or software can result in productivity gains, lower costs, or increased production capacity for your business. Working capital financing can fund the acquisition of new hardware or software to help grow your business to the next level.
This list is just a partial list of uses for working capital financing from Zip Capital Group. You may have a need that is not listed here. However, that shouldn’t stop you from considering working capital financing for your business.
Growing up, my father used to tell me “You need money, to make money.” I am sure many of you can relate to this. Nowhere is this truer than in business.
Hopefully, this blog post about the popular uses for working capital financing was helpful. If you have a need for working capital financing, Zip Capital Group can help you get the funding you need to help your business reach its full potential. Whether you are a small, large, local, or regional business, we have financing solutions such as equipment financing, and merchant cash advances to fit your needs. Contact us today or call (800) 795-3919.