Sometimes the only thing that’s small about a small business is the funding. This can mean slow seasons of business, clients not paying invoices on time, or a period of growth. No matter what it is, capital loans are a great way to help get some extra financial padding. If you’re still unsure if you need capital loans, the team at Capital Dude has put together a list of times that you might.
What are capital loans?
Before we get too far into why you need a capital loan, let’s go through what it is. These loans are also called operating capital loans because they’re used to help you run your day-to-day operations when you’re having difficulty satisfying them. When it comes to finding a loan that’s right for your business, there are four kinds of loans:
Waiting to collect on invoices
Invoice financing could be a viable option if you have clients who are slow to pay on invoices. While it’s nice to have extra working capital so you don’t have to rely entirely on invoices being paid on time, there are times when it’s just not there. Continuing operations like fulfilling orders or even making payroll can be tight. Funding from capital loans like invoice financing can help get you through times when you’ve had to tighten your belt somewhat.
Capital spread thin
Whether your business is expanding or contracting, there are times when your capital is spread thin. This means that your operating costs are either barely in the black or even in the red. When this happens, you’ve reached a point where your operations are likely not sustainable. A capital loan can help you continue operating and get back on track.
Even when it’s time to grow, you might not be financially ready. In fact, it’s common to not quite have the working capital to meet your needs in this case. When this happens, you can apply for a capital loan to take on the financial burden for a short time. You can then repay the loan as you bring in the necessary business to do so.
The same goes for struggling businesses. If you feel that your business needs some capital to pull out of a slow spell or jumpstart your operations, a capital loan could be just the thing you’re looking for. A struggling business can get the funding it needs to continue providing goods and services to regular clients.
Seasonal operations
Seasonal operations mean seasonal income. Whether you’re trying to get through your season or prepping to get started again, money can be scarce at times. A capital loan can help you get the working capital you need to get your business going for the season. This should be enough to get things headed in the right direction and assist you with your operations.
Get funding from Capital Dude
Get in touch with the team at Capital Dude today to learn more about how capital loans can help your business. We will help you find the perfect financing option for your business if your operating capital is low. Give us a call at 877-485-2779 or send us a message via our contact form to get started.
