The functioning of the enterprise is based to a large extent on financing day-to-day operations, not only with the capital contributed by the owners and the funds developed by the enterprise, but also with funds from external sources. Such sources may be, e.g. trade credit or revolving credit. These short-term financial liabilities are incurred by companies mainly to cover the fees related to their supply, equipment, sale and provision of various types of services.
Short-term working capital loan for financing the company’s current operations is paid by banks once or in tranches, after certain requirements are met by the enterprise. A special case of a revolving working capital loan is overdraft. This is the limit that allows the enterprise to be in debt above the available balance. The credit decision depends on the company’s creditworthiness, which is calculated on the basis of several factors, such as loan amount, loan period, financial standing of the company.
Another, very popular way to finance the company’s needs is also to use a non-renewable loan.
Unlike a revolving loan, it is characterized by the inability to reuse the repaid part of the loan granted.
The decision to take out a loan to finance the company’s operations should be considered. A well-chosen loan will allow you to function effectively on the market. Owners of enterprises that do not have adequate accounting services or do not have time to track bank offers should use the services of a professional credit advisor who will help in choosing the right offer and adapt it to the individual needs of the business client.
A working capital loan can be used for:
- financing current needs related to running a business,
- maintaining the company’s financial liquidity,
- keeping timely settlements with business partners, especially in the event of discrepancies between the date of receipts and expenses.
Features of a working capital loan for companies acquired by us:
- Up to 10 years financing period
- The maximum loan amount is even USD 30,000,000
- Flexible installments
- Loans including existing contracts – no financial documents
- Possible lack of security
- High amounts
- Friendly methods of calculating creditworthiness
- From the 3rd month of enterprise operation
- Income loans