Business Working Capital Loans

Working capital is the money that fuels your daily business operations and includes common expenses such as payroll, rent, utilities, supplies, and more. A business working capital loan can be used to cover these types of expenses. 

Short term vs. long term working capital

Working capital can be used for short-term needs, such as filling a gap in a payment cycle.

For example: A clothing distributor fulfills an order for a retailer. The retailer will pay the distributor 120 days from when the order was filled. Though the distributor has rent, utilities and salaries to cover. In this case, a short-term working capital loan can help bridge the gap between when the order was fulfilled and when the business receives the retailer’s payment.

Working capital can also be used to fuel longer-term growth to get your business to the next level, or off the ground if it’s just starting. A few examples include the start of a new business and significant sales growth by an existing business.

Established and start-up businesses may use a working capital loan to create a new product line, hire additional staff or amp-up marketing and advertising. For example: A car dealership wants to increase its profit. To hit their goal, they’ll need to double their staff size. But their new staff will need time to be trained and build clientele before they can start bringing in steady revenue. A business working capital loan can help cover the initial cost of hiring and onboarding the team members, in addition to covering their salaries for the first six months, before they are up and running.

Affordable working capital financing through Pursuit

When you access a business working capital loan through Pursuit, including SBA working capital loans, you have access to a range of affordable and convenient loan options that offer:

• Affordable monthly payments
• Fast funding: some loans of up to $100,000 can be funded in 5-7 business days
• No prepayment penalties
• Favorable rates and terms for start-ups and established businesses

Getting started

Prepare for the application process and better position yourself for an approval with these two tips.

Have your business plan and projections ready. This will show that you’ve carefully thought about your growth and operations, and that you’re ready to take on additional financing. Here, you can provide a high-level summary of your business. This should include:

• Details on your business operations
• A market analysis outlining who your competitors are in your industry
• Financial projections including past sales and anticipated expenses

Clearly identify your financing needs to show you will use the proceeds from your working capital loan. These questions can help you get started:

• What are you using the money for?
  Because a working capital loan has many uses, it’s important to explain exactly what you plan to do with your funding. This can be documented in a summary that outlines your plan. If you’re intending to use your loan for multiple purposes, the spending breakdown should be included in your summary as well.
• How is it going to benefit your business?
  Once you’ve identified your financing needs, you’ll want to outline how the loan will benefit your business. For example: Your business needs a working capital loan for advertising and rent. In your summary, you’d include details such as: where you will be advertising, what your expected return on investment is, how much your monthly rent is, etc. Providing this information will help you get to a “yes” more easily.

See how businesses have financed working capital with a Pursuit loan

Discover what’s possible with the right funding. See how we’ve helped other businesses finance their working capital needs.

We’ll help you find the best loan for working capital

When you apply for a loan with Pursuit, your loan officer will find the best loan program to meet your working capital needs. Interested in learning more now? Explore our top loan options.

• SBA 7(a) and Community Advantage: Access below market rates and flexible terms through the SBA 7(a) loan program.
• Pursuit SmartLoan: Borrow up to $100,000 in just 5-7 business days
  through an easy-to-use digital application.