Ever found yourself juggling bills while waiting for customer payments? That's where Working Capital Loans come in. These are short-term financing solutions specifically designed to cover your business's everyday operational costs.
Think of it as the fuel your business needs to keep the engine running smoothly. This includes crucial expenses like:
Unlike term loans used for large, long-term investments, working capital loans provide quick access to cash to manage the normal ups and downs of business cash flow.
Sarah owns a retail boutique. Before the busy holiday season, she needs to stock up on inventory but won't see sales revenue for a few weeks. A working capital loan allows her to buy the inventory now and repay the loan as holiday sales come in, ensuring she doesn't miss out on potential profits due to a temporary cash shortage.
Maintaining healthy working capital is vital for survival and growth. Insufficient working capital can lead to:
A working capital loan acts as a financial buffer, ensuring you can meet obligations and seize opportunities without interruption.
Good news! Qualifying for working capital loans is often more accessible than for traditional bank loans. Lenders focus primarily on your business's ability to generate revenue.
💡 Khojie Advantage: Unlike rigid bank processes that can take weeks, Khojie offers a streamlined application and faster funding decisions, often within days, helping you seize opportunities quickly.
Working capital loan amounts typically range from $5,000 to $500,000+, often correlating with your monthly or annual revenue. A common rule of thumb is an approval amount roughly equal to 1-2 months of your average revenue.
These are short-term loans, with repayment periods usually ranging from 3 months to 24 months. Repayment structures are often designed for convenience:
It's possible. Lenders often prioritize consistent revenue over a perfect credit score. While terms might be less favorable, options exist. Khojie can help explore lenders specializing in various credit profiles.
A working capital loan is typically a lump sum with a fixed repayment schedule (though sometimes flexible). A line of credit is a revolving fund you draw from as needed, paying interest only on the drawn amount, offering more flexibility for ongoing, fluctuating needs.
Generally, you'll need several months of recent business bank statements, basic business information (like EIN and time in business), and potentially tax returns or profit & loss statements.
Usually no, as long as it's for legitimate business operating expenses. They are not typically meant for large capital investments like buying real estate.
Keep your operations running smoothly and seize growth opportunities with fast, flexible working capital. Find the right solution with Khojie.
