Funding Options Alternatives to Loans - Prompt Capital Funding

What is Capital Funding?

Sufficient working capital is a key aspect of any company’s financial health, and not having enough working capital can have a serious impact on the future of your business. Many businesses choose to apply for external funding to create enough working capital to enable them to fulfil their growth ambitions. Prompt Capital Funding can cover short-term funding requirements while giving the business the money it needs to grow, or can bridge the gap between customer orders and supplier payments to help the company meet its funding obligations.

Working capital, also known as operating capital, is the cash available for the day-to-day expenses of running a business. It represents a company’s efficiency and short-term financial performance. It’s vital to have cash flow to cover payroll, inventory, marketing campaigns and any other financial expenses that occur within daily operations. Businesses should focus on maintaining enough operating capital to sustain growth.

Working capital funding allows you to continue your daily operations should you encounter untimely cash flow gaps, seasonal lulls or need to finance new equipment. By utilizing working capital funding, you can invest in your business so that you can ultimately cover your operating expenses.

It can be challenging for small businesses to obtain loans for working capital from traditional lenders who typically require extensive collateral or other guarantees that the money will be repaid. In addition, it is becoming more common for traditional lenders to require substantial personal guarantees, such as the business owner’s home or other highly valuable collateral.

While there are many different ways to receive capital funding for your business, a popular alternative to small business loans is getting a Merchant Cash Advance. Merchant Cash Advances are hassle-free and fast. Businesses who would be caught in the red tape associated with traditional loans, often get approvals within 72 hours of a request with a Merchant Cash Advance provider. Because there are no checks to write, and the money is paid back at every Point of Sale automatically, there is no concerning yourself with late fees. In addition, there are no fixed payments, late fees, hidden fees or interests. That means the agreed upon loan will never change percentage, and there will be no surprises. Because there is no collateral for the amount of the loan, the only side that takes a risk, is the Merchant Cash Advance Company. If your business is having a great day you can pay the balance off quickly. If your business is having a slow day, you are not penalized. The percentage always remains the same, and the amount differs based on your sales. Perhaps one of the most important aspects in today’s society, where your credit score can make or break you, Merchant Cash Advance companies do not appear on your credit report. To summarize, with the absence of guarantees, collateral, and equity, Merchant Cash Advances are a risk-free solution to your monetary needs.

With this funding option, your business can stay on track and meet goals, or you can use the money to grow your business in anyway you see fit. Having the capital for you business allows you to keep your options flexible.