Working Capital
Whatever your working capital needs may be, the expert team at KEYZ Capital is here to provide top-tier lending solutions, tailored to help your business thrive and maintain financial flexibility.
What is Working Capital Financing?
Working capital financing provides funding to cover day-to-day operational expenses, including payroll, rent, inventory, and other short-term costs. These loans are available through banks, private lenders, and SBA-backed loan programs, helping businesses maintain financial stability while continuing to grow.
Managing cash flow effectively is crucial for business success. Whether you’re facing seasonal revenue fluctuations, unexpected expenses, or expanding operations, the right financing solution offers flexible terms, competitive interest rates, and structured repayment plans to support your business.
The Benefits of Working Capital Financing
Working capital loans provide affordable terms, quick funding, and flexible repayment options to help businesses maintain cash flow stability and seize new opportunities.
Liquidity and Cash Flow Management
Adequate working capital enables businesses to meet short-term obligations, maintain smooth operations, and reduce the risk of financial distress by ensuring liquidity and managing cash flow effectively.
Flexibility and Opportunity Seizing
Sufficient working capital empowers businesses to seize opportunities, respond to unexpected events, and pursue growth initiatives by providing the flexibility to invest, expand, and enhance their competitive position.
Enhanced Supplier and Creditor Relationships
Maintaining adequate working capital strengthens relationships with suppliers and creditors through prompt payments and meeting financial obligations, leading to improved terms, discounts, and extended credit periods, fostering trust, credibility, and potential future partnerships with better pricing and terms.
Risk Mitigation and Stability
Working capital serves as a financial cushion, protecting businesses against unforeseen events or downturns by absorbing unexpected expenses, market fluctuations, or sales declines, reducing reliance on external financing, ensuring operational stability, and enabling businesses to navigate through seasonal or cyclical fluctuations while meeting obligations.
Short-Term Nature
Working capital is the financial resource that caters to a company's short-term operational needs, encompassing tasks like inventory management, accounts payable and receivable, and cash flow management within a timeframe of one year or less.
Current Assets and Liabilities
Working capital comprises current assets (cash, accounts receivable, inventory, short-term investments) and current liabilities (accounts payable, accrued expenses, short-term debt), with the net difference between them representing a business's net working capital.
Dynamic and Fluid
Working capital is a dynamic element that undergoes continuous fluctuations influenced by factors like sales volume, payment terms, inventory turnover, and economic conditions, necessitating active monitoring and management by businesses to ensure its adequacy and efficiency.
Operational Efficiency Indicator
Working capital acts as a gauge for a company's operational efficiency and financial well-being, requiring effective management that finds the optimal balance between cash flow maximization, minimizing excess inventory and receivables, and optimizing payment terms to ensure seamless operations and profitability.
Types of Working Capital Financing
1. SBA 7(a) Loan for Working Capital
The SBA 7(a) loan is one of the most popular options for working capital, offering low down payments, long repayment terms, and competitive interest rates. Loan amounts go up to $5 million, and funds can be used for:
Covering payroll and employee wages
Purchasing inventory and supplies
Expanding business operations
2. Business Line of Credit
A business line of credit provides flexible access to funds that businesses can draw from as needed, similar to a credit card. Interest is only paid on the amount used.
3. Short-Term Loans
Short-term business loans provide a lump sum of capital with fixed repayment terms, making them ideal for covering immediate expenses
4. Invoice Financing
Invoice financing allows businesses to borrow against outstanding invoices, helping them manage cash flow while waiting for customer payments.
5. Merchant Cash Advance (MCA)
A merchant cash advance provides an upfront sum of capital in exchange for a percentage of future credit card sales.
Fuel Your Business with Working Capital Financing
Secure the capital you need to manage daily expenses, invest in growth, and maintain financial stability with flexible terms, fast approvals, and tailored financing solutions. Whether you need funding to cover payroll, purchase inventory, or handle unexpected costs, our team at KEYZ Capital will guide you every step of the way.
🔹 Fast Prequalification 🔹 Expert Loan Guidance 🔹 Top Lender Network
Frequently Asked Questions about Working Capital Financing
Here are some of the most common questions we receive about working capital loans.
Covering payroll and employee wages
Purchasing inventory and raw materials
Paying rent, utilities, and operational expenses
Bridging cash flow gaps due to seasonal fluctuations
Investing in marketing and advertising
Business Lines of Credit – Up to $500,000
Short-Term Loans – Up to $250,000
Invoice Financing – Up to 90% of outstanding invoices
SBA 7(a) Loans – Up to $5 million
Business Lines of Credit – 7% – 25%
Short-Term Loans – 8% – 30%
Invoice Financing – 1% – 5% per month
SBA 7(a) Loans – 6% – 10%
Many working capital loans do not require collateral, depending on creditworthiness and loan type.
Invoice financing uses unpaid invoices as collateral.
SBA loans may require business assets as collateral.
Some loans, such as business lines of credit and short-term loans, can be approved within 24-48 hours.
SBA loans typically take 30-90 days for approval and funding.
Yes! Many businesses use working capital loans to expand operations, hire employees, or invest in marketing.
Startups may qualify for alternative financing options like merchant cash advances or invoice financing.
Most lenders require a minimum credit score of 600, but higher scores may secure better rates.
Terms vary, ranging from 3 months to 10 years, depending on the loan type.
We offer expert guidance, fast approvals, and tailored financing solutions to fit your business needs.
Why Work with KEYZ Capital?
At KEYZ Capital, we specialize in securing working capital financing for businesses across various industries. Our team has extensive experience navigating the financing process, ensuring you get the best terms with minimal hassle.
1
Fast Prequalification & Expert Guidance
We simplify the equipment financing process to help you secure funding quickly.
2
Access to Top Equipment Lenders
We connect you with a network of trusted lenders offering competitive terms.
3
Tailored Financing Solutions
We structure loans and leases to fit your unique business needs.
Loan Types & Products
Business Acquisition
Acquiring a competitor? Buying our a partner? Scaling your empire? We can help.
Working Capital
The quickest way to kill a business is to run out of cash. Let’s talk working capital to keep you alive and thrive.
Equipment Financing
Need any type of business equipment or machinery to operate your business. We can likely help finance it.