Working capital loans are different from investment loans or equity lines of credit. They are designed specifically to help you cover normal operating expenses that come up and affect your day-to-day budget. They provide a temporary influx of cash if you have fallen just a little bit short, and allow you to avoid falling behind on bills while you prepare for better revenues in the future.
Most working capital loans are between 3-months to 18-months in length, as opposed to other business investments that could have 5-year or 10-year notes. This is a benefit because you will always be able to see the light at the end of the tunnel and know that you will have the loan paid off sooner rather than later.
If you have ever applied for a business loan in the past, you know that most lenders require a ton of detailed information about how your business operates, what your monthly performance looks like, what the money will be used for, and a plan that proves your long-term viability.
Working capital loans are flexible and not designated for any specific purchase or product. Instead you will have access to the money to cover any and all business expenses that you need without having to specifically designate the money to any one purpose. In addition, the money is not linked to an investor, so you will not have anyone telling you how to run your business or where the money should go.
Working capital loans can either be secured or unsecured. You may be required to use a building or equipment as collateral on your loan. Unsecured loans typically have higher interest rates due to the increased risk on the part of the lender. Fortunately, Envision Capital Group has two simple methods for you to manage your loan, allowing you to plan ahead.
If you are a small business that has been in operation for at least six months, you could qualify for a basic working capital loan of up to $300,000 to be repaid within 18 months. You must be absolutely sure that you can handle the monthly payments before you accept this money to avoid bankruptcy or collections down the road.
Working capital is a useful tool when you are just getting started and have not yet put much money in the bank. Unexpected expenses or changes in market conditions can catch anybody off guard and cause them to fall behind. With a working capital loan, you can get the help you need when you need it to keep yourself moving forward.
For candidates that do not accept credit cards as a form of payment, or for those that do not receive the necessary volume needed for the amount of working capital they need. Envision can offer you a short term loan, and you can use the money however you choose.
Candidates for this type of loan are those that have a significant volume or credit card sales a month. Envision Capital takes a small percentage of your future credit card sales and advances that money to your business up front.