Working Capital Finance Australia

What is Working Capital Finance?

Working capital finance is a commercial loan for any business needing a cash injection to maintaining its daily operations. Funding is sometimes required to set up facilities or purchase tools and supplies to generate an income. There are a few options to accessing working capital finance through simple unsecured working capital loans. Another method is using the asset as security via equipment finance such as Hire Purchase, Chattel mortgage or a Finance lease.

Small business owners should implement both a short term and long term working capital finance plan to navigate the cash flow highs and lows while driving sales. Understanding how and when to use working capital ratio through debt or equity is important for strategic growth, profitability and the survival of the company.

Whenever you may need working capital finance, or looking for ways to raise money, plan ahead. Compare traditional lenders with alternative business lending, considering why you need to raise the money and your credit score. Consider the loan application process, fees and charges and time to repay the loan. This will help you narrow down your alternative business lending options to the ones that best suit your small business.