Working Capital Loan
A working capital loan is a type of business loan that is designed to help companies finance their day-to-day operations. Working capital loans are typically used to cover short-term expenses, such as inventory purchases, payroll, and rent. Unlike other types of business loans, working capital loans are not designed to finance long-term investments or expansion projects. Working capital loans are typically unsecured, which means that they do not require collateral. However, they may require a personal guarantee from the business owner or other assets to secure the loan. The amount of the loan is typically based on the company's accounts receivable, inventory, and other short-term assets, as well as its cash flow projections. Working capital loans are offered by a variety of lenders, including banks, credit unions, and online lenders. The terms and interest rates of working capital loans can vary depending on the lender and the creditworthiness of the borrower.