The ABCs of Working Capital Commercial Loans

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September 13, 2017
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September 13, 2017

The ABCs of Working Capital Commercial Loans

94912095Working capital Texas Commercial Loans can benefit a business that is short on cash flow or experiencing a slow period. Learn about how working capital Texas Commercial Loans work, and the pros and cons of these types of business loans.

Working capital refers to the cash money a business has to cover standard business operation needs such as employee payroll, rent, and monthly utilities. When a company runs short of cash to fund these expenses, a working capital loan can come in handy to keep the business going through a period where the business owner is short on cash and cannot liquefy any other assets to ensure operational overhead is covered.

There are several benefits to a working capital loan. They typically have a very quick approval time – a business owner can often receive needed funds within a week assuming the loan application time and approval. Also, there is no limit or requirement to how the company plans to use the funds, which is sometimes the case in a conventional loan via a traditional lender such as a bank. The application process is not as rigid, so companies that have a less than desirable credit score or a ding on their credit history still have a chance to get approved for a working capital commercial loans.

However, the downside is that there are a few downsides to this type of loan as well. Because of the leniency in areas such as credit and application approval, a working capital lender may need the borrower to put up collateral to secure the loan. Working capital Texas Commercial Loans also have shorter terms and higher interest rates than traditional loans with long term repayment structures.

Working capital Texas Commercial Loans can be beneficial for businesses that don’t fall into the “typical” cash loan category.

Since lenders don’t require the funding to be used in a specific purpose, this type of loan can help small businesses or new businesses with a bit of a “cash cushion” as they navigate the needs of their business without being too strapped for cash. This is particularly helpful for companies that don’t need new equipment such as machinery or computer systems, but rather a more specific or unique product to meet their business needs.

These loans serve an immediate need, and there are many lenders who specialize in this type of lending.

Determine your businesses specific needs, and then seek a professional that can help you get the working capital that you need. Having additional cash as your business is growing or getting off the ground can help take it to that next level.

Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177 NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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