Why Access To Working Capital Is So Key To Small Businesses

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This is our second foray into a national economic issue for small businesses in the same day. I must have gotten out of the ambitious side of the bed this morning.

Though the herd has thinned out in terms of the number of companies offering working capital, those who survived the recession are ginning up big-time on their offerings. I’d be remiss if I didn’t mention Direct Capital among those companies—I do work for them, after all—but we’re not alone in the universe. Even if many banks are making a decision to not get federal money for small business lending, which is weird on first blush, there’s plenty out there.

So why use working capital*? Hopefully you’ll forgive me if I quote myself, because I’m about to:

In fact, that’s the best way to look at what working capital can offer your business: Opportunity. The money you use and the rate factors you pay back aren’t being used in vain. They’re allowing you to get a key piece of equipment or make necessary improvements to drive revenue to your company, revenue that will hopefully outstrip the working capital costs.

Now, whether you can get good rates and enough working capital is a larger question, one that can only be answered by thoroughly exploring your options in the arena. But the access is undoubtedly out there, and it doesn’t take a pith helmet, a machete and a blunderbuss to get to them. As a good start for your own process, I continue to highly recommend this working capital calculator.

Tell us your own experiences with looking for working capital. Optimistic?

Photo credit to iStock.

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*Working capital not available in the following states: AK, DE, ND, VT