Working Capital Finance: the cash you need to do business

When it runs dry, your company can’t pay suppliers or staff - which means it simply cannot operate. That’s when a Working Capital loan can provide a quick injection of funding - the working capital you need to stay in business.

Working Capital Loans are used to cover everyday operating expenses, such as your accounts payable and payroll. They are simple, short-term loans designed to provide a cash lump sum fast and intended to be paid back in a matter of months - and they can be vital even for thriving businesses.

When do you need a Working Capital Loan?

The big challenge for all businesses is cashflow. When cashflow slows, your working capital can soon be eaten away. There are several common reasons for slow cashflow:

Slow paying clients

A business can have a full order book, but if customers are slow in paying there will be no flow of cash through the business. It can’t buy in raw materials or stock, pay the workforce – or even keep the lights on. Small businesses who work with larger business customers are particularly prone to cashflow problems, as they can find it impossible to enforce timely payments.

A Working Capital Loan could keep your company in business until that large payment comes in.

Seasonal business downturns

Businesses with seasonal work patterns also need Working Capital Loans. Retailers may be cash rich during the Christmas peak selling season and first quarter, but need support during a slow summer season. Manufacturers run their production during the summer - but may need a Working Capital Loan to pay wages and other operating expenses during their quiet fourth quarter. These loans are usually repaid easily as the company hits its busy season.

Growing businesses

Rapid business growth can actually be a serious problem if you don’t have sufficient capital to cope with the increased demand. A new customer can mean taking your business up a gear, and extra costs before the extra revenue from the client’s payments start rolling in.

Working Capital Finance can help provide fast access to cash for the sudden increase in payroll or inventory needed.

Why you need Rangewell to arrange a Working Capital Loan

A Working Capital Loan is a common finance solution, but some suppliers may demand high interest rates for the cash you need. Lending is priced on risk, and if these lenders see a cashflow problem, they may take it as evidence of poor management or other underlying problems. This could increase the risk and the amount you pay.

At Rangewell, we know things may not be that simple - and that cashflow problems can be a sign of a business that is growing fast. Our team of business finance experts can work with you to understand the real issues that are causing you to need a Working Capital Loan. They can help you find lenders who work in your sector and who are the most flexible in their approach, and use their understanding of your business to help you secure the most competitive deal.

Why you should call us now

If you believe that you may be having issues with cashflow, it’s better to have a solution in place before things escalate. If we can help you set up a Working Capital Loan now, it may be possible to find better terms than those available if those issues become acute.

Arranging a loan will cost you nothing if you don’t draw down the cash – but simply knowing you have a financial lifeline could mean valuable peace of mind and, at Rangewell, we can help you with the widest range of business finance options, including:

• Growth equity financing
• Growth finance
• New business loans
• Short-term finance
• Small business loans for bad credit
• Supply chain finance
• Truck finance
• Unsecured finance
• Whole ledger finance

Call us now to protect the future of your business.