Working Capital Loans

Working Capital Loans

Small business owners building their company with a working capital loan.

Working Capital Loans Make The Difference

Working capital loans can make the difference between a successful business and a failing business. Attempting to obtain a business loan through traditional financing options can be very difficult today so we have developed a program that offers companies easy access to working capital for their business. You can receive up to $500,000 through our many business loan programs.

Our company offers small businesses working capital through a merchant cash advance or another type of unsecured business loan. The most important factor you need to qualify is having existing monthly revenues of at least $2,000 for companies that accept credit cards or $20,000 for those that do not. You also need to have been in business for at least 3 months. We are very flexible with our credit requirements so even if you have bad credit or have been denied recently we offer the opportunity to receive working capital.

Why Choose Us

At Shield Funding we offer working capital loans for businesses which require cash to make their business operate more efficiently. Some of our clients request working capital to manage their creditors better, purchase new inventory or equipment, expand their labor force, or just to increase their operating liquidity to capitalize on opportunities. Our working capital loans can be used however you wish, there are no restrictions. We also offer working capital loans for bad credit applicants and we have a very high approval rate. If you have been denied any type of funding or you know you have a very poor credit score we encourage you to apply with our bad credit funding program. Whether you have good credit or bad credit we can structure a working capital loan for you that makes sense. We can begin processing your application shortly after you apply. Improve your company operations by applying today.

What is Working Capital

Working capital is the cash required to manage a company’s daily operations, also known as operating liquidity. It is the money used to purchase the goods or inventory that a business sells in order to generate revenues and profit. It is also the capital required to sell that inventory, such as labor and other forms of overhead. Maintaining comfortable working capital levels allows a business to take advantage of money making opportunities as well as operating a business in an optimal way.

Working Capital Management

Managing working capital is critical to a company’s success. Buying too much inventory or too little inventory can affect the bottom line of a business. Hiring too many employees or not managing their production can also lead to losses. A business owner must consider every aspect of working capital management to ensure the company can continue its operations. Below are some basic tips that can lead to successful working capital management.

Working Capital Strategies

Managing your cash flow involves establishing and documenting everyday expenses and understanding your working capital limits. Daily assessment of your bank accounts, pending payments, outstanding invoices, and overall financial health are the basic steps in ensuring proper working capital management.

Invest your working capital in cash flow opportunities. Improving your inventory turnover ratio will increase your cash flow so take a proactive role by offering customers incentives or discount prices for larger purchases. Customers will purchase more if they can save money and a phone call or promotional effort can make a real difference when attempting to increase your available capital.

Reinforce timely payments for outstanding invoices. Develop a strict policy for timely payments and your customers will understand from the very beginning that you are not a creditor that can be delayed. Often customers will choose to satisfy your invoices and delay payments to other creditors who are not as diligent.

Balance purchasing to ensure good pricing without too much overstock. Working capital loans can be utilized to increase inventory levels and decrease product costs. Determining the maximum efficiency levels involves an in-depth analysis of customer behavior as we as historical sales data. Document inventory levels, consider seasonal or natural fluctuations, and establish the maximum inventory levels with the least amount of overstock. In your analysis consider the points that are not immediately apparent. For instance, although products on the shelf reduce cash flow, you will not take an aggressive approach to selling inventory that you do not have. Sometimes having inventory forces small business owners to be more proactive, and ultimately more productive. However, too much inventory may cause even the most proactive owners to remain with some inventory. Combine data from inventory with the success or failure of proactive approaches and you will surely be able to utilize working capital efficiently.

Distributing working capital effectively is not just about inventory, it also involves managing labor costs and productivity. Business owners often fail to manage their employees correctly. Wasting labor hours is no different than leaving stock on shelves. You must delegate production to employee strengths and hire additional labor only when you require labor to meet production needs. A daily, strategically prepared list of tasks before the day begins will result in maximum output amongst your existing labor team and reduce the need for additional employees.

We are a leader in providing working capital loans in the financial lending industry. We take pride in offering the best financing solutions possible and contributing to the success of good businesses. If you have any questions about any of our business loans please feel free to call our account specialists or contact us online. We look forward to hearing from you.