No doubt you’ve looked into getting money for your small business before. You’ve read a lot about working capital, equipment financing, and the differences between kinds of leases. At some point in your life, you may have used financing to get something you need for your business. It’s not like your average small business is so flush with cash that it can roll through life without ever looking into working capital management, after all.
Along the way, you’ve probably wondered why you should get a particular kind of financing. For today’s purposes, we’ll go with working capital*, one of Direct Capital’s most popular programs and one that’s widely used by small businesses and franchises alike.
If you’re not familiar with working capital programs, you can learn more here.
In my mind, the #1 reason to get a working capital loan is this: The versatility. It can’t do your laundry and it doesn’t slice and dice carrots, so maybe it’s not that versatile. But the fact of the matter is that working capital can be used for virtually anything your small business needs.
Great Ways To Use Working Capital
- Covering payroll and hiring
- As cash to get you through the lean times
- To make down payments on equipment
- Marketing and advertising efforts
- Purchasing a unicorn
Okay, I did make that last one up. I’ll admit it.
Still, there are relatively few limits on what you can use working capital for, and that makes it a powerful tool. So many kinds of financing—particularly bank loans—have a host of restrictions on what they can be used for, which can be frustrating and can limit you from quickly reacting to an unexpected expense. Working capital is where it’s at.
Do you agree that this is the best reason to get a working capital loan, and have you used those loans in the past? As always, we want to hear from you.
Photo credit to iStock.
*Working capital not available in the following states: AK, DE, ND, VT