When to Use a Working Capital Loan for Your Business

Odds are, your competitors are probably already using a working capital loan to help them succeed or bridge thin pay periods, especially during COVID-19.

Nowadays, achieving business success takes more than a plan and working hard – current events, economic trends, and seasonality play a large role as well. And even if you do everything right, you may still find yourself just shy of the working capital needed for a few short-term bills.

But even these complex working capital problems can have a simple solution: a short term working capital loan or ‘bridge loan.’

Working Capital Loans

A working capital loan is a short-term loan used by businesses for financing immediate obligations or needs. These loans allow the borrower to meet their current financial obligations by getting the working capital they need quickly for payroll, taxes, rent, or more inventory for large orders or busy seasons.

Working capital loans are considered ‘short-term’ loans because they are usually only up to one year. These loans are shorter because they are meant to bridge a (short-term) financial gap, not a long-term need like building loans or expansions. Large corporations and small businesses can benefit from working capital loans because everyone may need an advance of funds at specific points throughout the year.

Working capital loans are also fast options that can give a business immediate working capital, without the typical weeks or months of waiting time.

When to Use a Working Capital Loan

Purchase Additional Inventory

Additional inventory might be needed when you don’t quite have the working capital on-hand for a busy period you know is coming up! If you get a large order but don’t have the means to buy the initial products needed to fulfill that order, you could miss out on a huge sale or job. Use a Probably small business working capital loan to bridge the gap and get your inventory or additional products today!

Assistance with Payroll

When you need capital for payroll, speed matters. Your employees depend on your payroll, and you depend on your employees to show up. Luckily, you can also count on Probably to get you the capital you need quickly to make your payroll due dates without any gaps or hiccups for your workers. After all, the most critical part of your business is the workers!

Invest in Business Improvements & Equipment

Buying new equipment can be a considerable investment, but sometimes you need to spend money to make money. For example, if you need working capital to buy a screen printer to get your business off the ground, then you’ll be spending money with the knowledge that it will ultimately bring in money as well.

Probably knows that every industry, from restaurants to medical, require equipment to do their jobs – and we are happy to help fund the equipment you need to succeed.

Pay Taxes & Other Fees

Sometimes periodic fees pop up when you least expect them, and sometimes quarterlies add up faster than you planned. Using a working capital loan’s quick and straightforward solution can help pay for these surprises as you make a longer-term plan.

Invest in Marketing & Advertising

Marketing can be expensive, and if your marketing efforts need to be bumped up during certain times of the year, it can have an enormous impact on your budget. But this is another area where you have to spend money first, in order to make money later on. Make sure you can get the working capital you need for a killer campaign – even if the bills come before your busy season spikes.

General Help with Daily Cash Flow

All small businesses have slow and busy periods, but that doesn’t mean your bills will line up with them. Sometimes an account comes just a few days or weeks too early, right before a big sale or your busy season. Sometimes a repair comes up earlier than expected, or another need has to be dealt with immediately, even if your next influx of cash is weeks away.

Use a working capital loan to help with your general cash flow at any time of the year to bridge the gap between what you have to pay now and what you’ll be making later.

Do These Business Scenarios Seem Familiar? Contact Probably for a Working Capital Loan on Your Terms!


Our Small Business Financing Options

Probably works hard to help small businesses finance their operations, expansions, and success! We offer a wide array of small business financing options – but our three most popular are our working capital loans, merchant cash advances, and equipment financing.

Let’s look into each so that you can feel confident in your small business financing choice! Of course, if you still have questions, reach out to our knowledgeable team to learn which of our small business financing options is the right fit for you.

Working Capital Loans

A working capital loan is a loan for your small business’ everyday operations. That means these loans have shorter terms and are not used as prolonged investment funding. Think of these loans as ‘bridge loans’ to help you bridge the gap between paydays, large orders, or an influx of working capital.

Working capital loans are often used for payroll, equipment, taxes, marketing, rent, or debt payments when your business’ next payday is still a few days away. Seasonal businesses might need working capital loans to bridge the gaps when they are prepping for their busy seasons.

All small businesses have slow and busy periods, but that doesn’t mean your bills won’t continue to pile up. Use a working capital loan to help with your cash flow at any time of the month or year.

Merchant Cash Advances

A merchant cash advance (MCA) isn’t a loan but a cash advance based on your business’ credit card sales. You can apply for a merchant cash advance and have your funds deposited into your business checking account quickly, making it an excellent option for fast funding.

Our merchant cash advance looks at your daily credit card receivables more than your business or personal credit to determine approval. This means even a small business with lower credit scores or a new business without a long credit history can be approved.

While a merchant cash advance might make sense for a small business that needs cash quickly and doesn’t have a long (or high) credit history, it is essential to make sure you understand the term-limit, interest rates, and any holdback.

Ask your Probably agent to explain this small business financing option to you – as clarity and transparency are two of our core values!

Equipment Financing

Our equipment finance services can help your small business acquire new or used equipment without emptying your bank account. When you lease a piece of equipment, you’re essentially renting it while making payments for the duration of the lease agreement. Our equipment financing not only gives ownership of the equipment to your business but the equipment also usually serves as collateral for the loan.

We know that equipment is essential to keeping many businesses going, and if you use large equipment, or need multiples, it can tie up a large amount of your working capital or credit. Whether your business has one or several equipment needs, equipment financing is a way to have that equipment right when you need it, even if you do not have the full cash on hand.

Choose an equipment finance company that works in your industry and understands your unique needs for the best results and approval rates – like Probably! We specialize in equipment financing for small businesses in multiple industries, and we can say ‘probably yes’ to your equipment needs.

Contact Probably for the Best Small Business Financing Option for You!

Most banks won’t even consider helping smaller or newer businesses but Probably wants to work with you to help you grow regardless of your age or credit history. That’s why we offer small business financing options that can work for anyone.

We think that every business deserves the chance to get the funding they need to succeed – and we’ve made our business out of believing in them!

Contact Probably today to learn more about our small business financing options and how they can work for you.