How Our Working Capital Program Can Help Your Small Business
Today begins our four-week series called “Finance Fridays.”
If you are a frequent visitor to the Direct Capital blog, you know that we are always the first to provide small businesses with tips that can help grow their business. Whether we’re talking about social media, customer satisfaction, or how to increase revenue, we’re here to be your go-to business advice blog.
But today – and with this series- we’re switching gears. The Finance Fridays series will be an all-encompassing look at our financing programs. You’ll get an overarching view of what products we offer and how utilizing those products can help grow your business. First up, is working capital.
In this post, you’ll get a full overview of our working capital program – what it is, how it can help your business, and what your next steps would be to get started.
What is Working Capital?
Working capital in its literal form is the cash flow a business has on hand to use for everyday business expenses. In the financing world, working capital – or a small business loan – is a loan obtained for businesses to use in order to take advantage of opportunities you can’t afford to pass up.
Benefits of a Working Capital Loan
- The biggest advantage to obtaining a working capital loan is businesses being able to cover unforeseen expenses without having to tie up their current cash flow.
- The business equipment and property is not tied up in the loan. This means that after the loan is paid off, you have no further obligation to the lender.
Our History with Working Capital
Direct Capital’s business loan product originated in 2009 as a result of the credit crisis happening in the U.S. The credit crisis isn’t news to anyone, especially anyone who owned a business during that time. And like any other business, Direct Capital needed to rethink its strategy.
The small businesses we served then were not looking to invest in equipment for their business, or couldn’t afford to do so. We then decided to expand our business into the loan market so we could help more customers get the money they needed.
Getting a Working Capital Loan with Direct Capital
Now you know how we started in the loan business, but how does us offering this product help you? What does our working capital loan look like? You’re about to find out.
- What are your terms? You can receive a loan for as short a term as 3 months or choose to pay it over our longest term length of 18 months.
- How much can I borrow? We loan $10,000 to $150,000.
- What are your rates? Because rates depend on a number of different factors we can’t give you a set rate. What we can tell you is that our rates are some of the most competitive in the industry and are based on over 20 years of experience financing to small businesses. If you are curious about what your specific rate would be, just call us up, talk to a rep, and they will be happy to assist you!
- What are your repayment options? With our working capital loan, we deduct daily payments automatically from your bank account. We will not be able to complete a loan without the ability to do automatic daily payments.
- Do you need a personal guarantor to sign? In most cases, yes. Because many of the businesses we work with have fewer than 10 employees, we know that most business needs are the sole responsibility of the business owner and a PG would be necessary.
- Are there any industries you don’t work with? As of right now, we can provide a loan to businesses in almost every industry. However, we do have a few exceptions: gambling, gun manufacturers, financial brokers, real estate investment companies, and non-profits.
- Do you loan outside of the Unites States? Currently we only loan within the United States and have a few state restrictions. We cannot give working capital loans to businesses in Vermont, North Dakota, Alaska, or Delaware.
We take our role as a small business financier very seriously, which is why we get as much information as we can about your business before deciding on any financing agreement. We want to make sure you are getting the best package for your needs.
The financial representatives you’ll work with will need to know exactly what your business needs are – gross income, turnover rate, what you need to help grow your business etc. – in order to properly assist you.
Our goal with Finance Fridays is to provide meaningful insight into the work we do here at Direct Capital and how a working capital loan could help your business. The loan product is newer to our portfolio as we have only been offering it for 6 years, but Direct Capital does have over 20 years of experience in the finance industry. We know how to help small businesses like yours grow and succeed, and we can’t wait to start working with you.
For more information, or to get started, call our office at 866-777-0117 or click on the banner below!