Financing for small and medium-sized businesses through a working capital loan. Financing is not always easy for SMEs. Especially if you have to buy goods or resources, but your liquidity is not sufficient. A working capital loan can cover your needs exactly and allows you to finance your raw materials or goods. From their proceeds, repayment of the working capital loan is common in medium-sized companies and is usually not a problem.
How can a working capital loan help?
A working capital loan is often only a short-term loan and is mainly used for financing in medium-sized companies. With a working capital loan you finance your current assets, that is, with this loan you can bridge the duration from the time of purchasing the goods until you generate revenue with the products. Often there is not enough liquidity for new raw materials and goods in small and medium-sized businesses to be able to produce new ones. The most common method to avoid this liquidity problem is the working capital loan.
- A suitable loan is always available to you
- You can finance your orders in advance
- Financial scope
- Reserves in the event of a default
- Fast repayment and immediate use of the loan possible
Who is a working capital loan for?
Small and medium-sized companies in particular use the loan for their financing. The comparison is often made that what is the disposition loan for the private household is the working capital loan for the entrepreneur. The two loans have certain things in common. What has to be considered with the working capital loan is that the interest rates are usually higher than with a normal loan. But this can be cleverly compensated for: if a company pays the suppliers quickly, a cash discount can be claimed, which ultimately does not result in the bill being that high.
The approximate guideline, as is the case with most medium-sized companies, is 14 days. If you repay the loan within two weeks, you can claim a considerable cash discount, in which the somewhat higher interest rates no longer outweigh. Contact our coaches, who are specifically responsible for SME financing and help you plan and execute your working capital loan. Cleverly planned, your company can add great value from the working capital loan.