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When to Use a Working Capital Loan for Your Business

Even complex working capital problems can have a simple solution: a short term working capital loan or ‘bridge loan.’ Learn how they can help here!

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!