How to Determine If Your Business Requires Working Capital Funding

Working capital loans can be used to help companies pay for their operational costs. The net capital is also defined as the difference between a business’s current assets and liabilities. It’s the amount of money the company has currently as its disposal to pay for daily and immediate expenses. If you are having trouble meeting those financial requirements, then you’ll want to look into business capital loans.

However, there are instances when an organization might have more than enough in working capital all the time, yet it still might not be a good thing. This could be a sign that the business isn’t utilizing its assets to the fullest, and you might want to look for better ways to utilize those assets.

Regardless of why you think this kind of loan might be right for you, it’s important to understand the working capital ratio to help you determine how much money you should request. In terms of financial health, you will want a ratio between 1.2 and 2.0, regarding current assets / current liabilities. If a business has $100,000 in current assets and $80,000 in current liabilities, that means 100,000 / 80,000, which results in 1.25 s the working capital ratio.

If your working capital is below 1.2, then you will want to request the amount of money you’ll need to bring it up some when applying for business capital loans.

Ways to Utilize Business Capital Loans

You can go about applying for business loans in a number of ways. There are installment loans or term loans that are issued to borrowers in a single lump sum, and from there borrowers are expected to pay back that amount itself plus interest in fixed installments. You’ll find numerous online lenders and alternative lenders that are offer a quick application process and competitive rates.

The Small Business Administration also offers a number of loan programs, including capital loans, most commonly in the form of 7(a) loans. A portion of the loan is guaranteed by the SBA, so if you lack the collateral necessary to get a loan on your own, the 7(a) might be a good option.

Before applying, have an outline of how you plan to use the money. Lenders will want you to be as detailed as possible. Also, don’t just think of how your business will benefit with the loan, think of the possible setbacks as well. If you don’t carefully look into the fees, terms and conditions, repayment schedule, interest rate, etc., your company might end up being in an even worse situation ultimately.

Regardless of what type of business capital loans you’re looking for, one lender you might want to consider is US Business Fund. The site offers loans, lines of credit for small business, including those that require working capital, and more. The application process is extremely fast.



6 Tips for Applying for Funding for Your Company

Small business funding, unfortunately, isn’t easy to get for most people – especially if you don’t already have good credit. Typically, it requires a lot of legwork to get business loan. For some start-ups, owners often have to resort to getting a personal line of credit and using that to find the business. Easy to get small business loans really do exist, just as long as you prepare everything properly and look in the right place.

Here are a few tips to increase your chances of finding and obtaining a small business loan:


  1. Get your personal credit report cleaned up. This is something that lenders will want to see. If you have poor credit, take the time to get it straightened out. You might even want to use credit repair services.
  2. Create the best business plan possible. Consider this to be your “sales pitch” to funders. If you want as much money as possible from a lender, you can’t be secretive. You must specify exactly why you need the money, how much you need, and what it will be used for.
  3. Keep everything as organized as possible. A wide range of documents may be required, including tax returns, annual revenue, and bank statements. Know which documents a potential lender will require from you ahead of time.

More Tips for Easy to Get Small Business Loans


  1. Determine the best type of lender. There are many types of organizations that offer easy to get small business loans, including banks, online lenders, non-profit micro-lenders, “angel investors”, credit card companies, and more. Use a bank when you already have good credit and can provide collateral. Use online lenders if you lack collateral and need the funding as quickly as possible. A micro-lender might be ideal when you have a company that is so small that it doesn’t qualify for traditional funding.
  2. How long have you been in business? If your company is under one-year old, you’ll have difficulty If you have a start-up, consider solutions such as personal loans, angel investors, or even online crowd-funding if you can come up with an innovative marketing message.
  3. Find out how much the payments will be and make sure you will absolutely be able to pay them. Different lenders have different terms and different interest rates. You might be required to pay just one time a month or two times a month.

If you need a fast business loan, US Business Funding is a great place to start your search.



7 Steps to Get A Business Loan

Before the hard strike of the Great Recession, it was a lot easier to get business loans. You have to meet certain requirements before the lender can grant you the loan. Given below are 7 steps that you may want to follow when apply for business loans. Read on.

Develop a relationship with the lender

Before you even need the loan, you may want to develop a relationship with the lender. The main people should get familiar with your business. Keep in mind that lenders like to do business with trust worthy people. So, let them know as much as possible about your business.

Purpose of the money

You may want to decide on the purpose you applied for the loan for. Make sure you are going to get a loan for a good purpose. For instance, you can get a loan to buy equipment, property or software. However, it’s not a good idea to get a loan to finance losses or to get unimportant business assets.

Business needs

You may want to make an assessment of how much money your business needs. If you have a small business, you may not want to apply for a large loan. However, make sure you don’t underestimate the money you need to keep your business running. Both underestimating and overestimating can cause problems down the road.

Credit score

Typically, lenders consider the personal credit of a businessman before granting the loan. So, make sure you have a good credit rating. If you have a bad rating, make sure you work on it to get it in good standing.

Finding the lender

You may want to read up on the type of lender that will best suit your business needs. For conventional loans, you can go to commercial banks. However, their parameters are strict. Non-bank lenders is another option that you may consider. Then there are region specific lenders that include banks and other institutes that are interested in economic development in those areas. Lastly, you can check out crowdfunding websites especially if your capital needs are not over $10,000. For personals, you can also check out peer-to-peer websites, such as The Lending Club and Prosper.

Loan application package

You may want to get the loan application package ready. This includes the documents submitted so as to apply for a business loan. Generally, it includes a business plan, profit and loss statements, balance sheets, and cash flow statements, just to name a few. You may want to keep in mind that lenders may also check out your social media pages while doing their research.

Hang on

Once you have submitted the required documents, you may have to wait for 15 to 30 days for a response from the lender. You can check in on a weekly basis for an update. Usually, lenders may require additional documents before granting the loan.

So, if you have been thinking of applying for a business loan, we suggest that you follow the steps explained in this article.

Are you in need of a business loan? If so, we suggest that you check out BizTechMgt Business Loans.


Business Strategies

Changing Business Strategies 2020

The ongoing COVID-19 pandemic has turned life upside-down for many Americans, and has forced many small business owners to either temporarily shutter their businesses or at the very least completely change the way in which they operate.

Some small businesses have been forced to close down due to an inability to pay rent, lease payments, other bills and salaries. Others have been able to make it through the pandemic so far, but will still likely see a significant financial impact if they have not already. Even those businesses “making it,” many have had to lay off employees.

There are only so many expenses businesses are able to cut. It is important for owners of small to medium-sized businesses to be proactive about making the necessary adjustments to stay financially healthy and make it through the pandemic whole.

What should you do?

To understand the steps you should take now as a business owner, it is important to take the future into consideration. It is difficult to say how long an economic bounce back will take as states start to reopen and the economy slowly begins to rebuild. Companies that make it through may start to change the strategies they use for taking out loans or leases and paying cash.

There is a misconception that banks are withholding money from small businesses, but this isn’t true at all. Local banks are as affected by the pandemic as the businesses they serve. These banks aren’t receiving payments for loans they gave during a prosperous economy.

In thinking about this, the old saying “cash is king” still rings true in a sense, when you consider the vast majority of companies did not have enough savings for a month without being open. It is difficult for businesses running lean operations to keep reserves for a rainy day.

However, the good news is that the pandemic hasn’t completely stunted the growth of companies throughout the country. There are still plenty of businesses looking to grow and flourish in this economy. Businesses in industries such as technology, manufacturing, biotechnology, medicine and transportation are still seeing significant growth.

With this in mind, it’s not unreasonable for you as a business owner to still have your mind on growth. Consider the areas in which your company needs to grow-employee numbers, equipment, marketing budgets, software, etc., and the strategies you will implement to accomplish these goals.

As the global economy repairs itself over the next 12 to 18 months, business owners will need to make major decisions about how they approach growth to set themselves up for a sustainable long-term future. As always, the recommendation is “if it appreciates, buy it. If it depreciates, lease it.”