July 17, 2024
What is a Working Capital Loan? Do you Qualify for a WC Loan?
Working capital management is a business process that helps companies make effective use of their current assets and optimize cash flow. It's oriented around ensuring short-term financial obligations and expenses can be met, while also contributing towards longer-term business objectives. We can help you optimize your financial obligations and achieve perfect working capital management. Another word for this lending product is Merchant Cash Advance.
Have you heard of a working capital loan? It is a loan that is taken by a business operator to finance the company's everyday operations. The funds can be used for a variety of reasons: equipment purchases or repairs, expansions, salaries, hiring, operating day-to-day, marketing/promotional activities, leasing/renting, etc.
Another word for this product is MCA (Merchant Cash Advance). A merchant cash advance (MCA) is an alternative type of business financing that advances a lump-sum payment based on future credit or debit card sales. You’re essentially guaranteeing the advance with future revenue. This type of financing is typically for businesses that get revenue through credit card sales. These lending products are also known as Revenue Based Financing or Unsecured Working Capital Loan.
The cash advance isn’t technically a business loan, and MCAs don’t report your payment history to the credit bureaus. So you won’t build credit through this financing. Eligibility guidelines for MCAs are loose, making it easy for businesses with bad credit to get approved. A percentage of the credit sales is taken, usually on a daily basis in order to pay back the cash advance.
This is a very atypical type of "loan" although it is the easiest alternate lending product available. Learn more of the benefits below as well as the qualifications:
BENEFITS
-Fully Customizable product based on your business needs
-No compounding interest
-Funds can be used for any use
-Pay-back is based on the sales derived from the business
-Loan amounts: $10K to $5 million
-Same Day Funding available upon qualification
-The most flexible of terms
-No minimum FICO
-Liens/Judgements OK
-Bad Credit OK
QUALIFICATIONS
-Three months to six months in business with an open business bank account
-$120,000 in annual gross sales ($10K a month deposits)
PAPERWORK REQUIRED
-Electronic/Manual Application
-Year To Date Bank Statements
-Year To Date Credit Card Processing Statements (if applicable)
This is one of the easiest funding available, gathering documentation should not be very difficult for those who keep their business documents in order, however we can help you get ready for the best funding amount possible if you need assistance.
TOP INDUSTRIES that benefit greatly from this lending product (among others): Construction, Manufacturing, Transportation, E-Commerce, Retail, Medical...
Average MCA/WC Package: We see the most success with the average borrower who has $10K + gross monthly deposits into a business bank account and with six months in business. Credit score does not tend to be an issue for the average user of this lending product. This lending product is among the most favorite among entrepreneurs for it is the easiest to get and the fastest to get when in great need of working capital.
If you have more questions you can enter your information in the contact form and we will contact you ASAP.
Author: Denise Cockburn (September 2023)
Update: D. Cockburn (April 2024)
Update: D. Cockburn (July 2024)