Working Capital

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Working Capital

Working capital is cash or other assets that your company has on hand. Working capital is used to cover operational costs like bills and payroll, for optimal short-term growth.

Working capital covers the following types of costs:

  • Payroll
  • Rent
  • Debt payments (principal and interest)
  • Supplies
  • Taxes
  • Other overhead costs.

Without sufficient working capital, your business operations will suffer. At fundygo, we can help you secure working capital so your business can grow and thrive.

Working capital funding from fundygo, is meant to be used specifically to finance the everyday operations of a business. So, the cash that you need to cover your short-term obligations will be compensated with this fund type.

With large amounts and long terms, we offer a great working capital option for businesses with larger operational expenses to cover.


The Assets You Need, Fast

When you run a small business or medium sized to large corporation, there will always be hurtles to overcome as far as getting your business the traction and momentum it needs to reach ultimate success. When budgets are tight and there’s no room for growth within your business, working capital may be a great solution to the issues you’re experiencing. Working capital can take the form of cash assets or liquid capital, and can help cover operational costs like payroll, rent, debt payments, supplies, taxes, and other overhead costs and bills. Ultimately, it should reflect the amount of money your company needs to continue regular and daily operations; working capital reflects how much cash your company has on-hand to cover those expenses. With insufficient funds, your business can be stifled and suffer from slow growth or being bound by previous loan repayments. Having enough working capital is important to keeping your business running and growing at a steady rate.

Is A Working Capital Loan Right For My Business?

If your company has just enough revenue, assets, and cash flow to cover your expenses and not much else there’s a high probability that a working capital loan can help free up your company to make the moves and strategies it needs to make to grow in a competitive market. If you’re in the red as far as the amount of money your company has on hand to remain sustainable, it’s even more imperative that you weigh your working capital loan options. Most of the working capital loans available on the market are short-term loans meaning that they are structured like any other short-term loan and usually net a maximum of $250,000 and span a repayment period of 18 months. By taking out a working capital loan you can solve your issues regarding operational expenses and make smart decisions for your business in the short-term.

How to Manage Your Working Capital

By taking out a working capital loan you can better your understanding of the lending flow of a business and add the responsibility of taking on a secondary or tertiary business loan to your financial portfolio. Managing your working capital loan responsibly will help to ensure the security and viability of your business during future loan cycles and processes.

Be sure to manage your working capital responsibly; following are some tips to keep in mind when planning for the future of your business. It’s important to always keep an eye on your expenses; even the smallest or insignificant expense can add up and become an unmanageable detractor from your working capital. It’s essential to keep your working capital ratio at least 1-1 or higher to ensure proper business growth. As a business owner you must keep a watchful eye on company-wide expenditures and cut back on costs wherever you can.

Improving your receivables collection can also go a long way to improving your businesses’ working expenses. That’s because many of your working capital may be trapped in customer’s unpaid invoices adding to the issue of an unviable working capital ratio. By reorganizing and adjusting your business collections process you can better secure the capital you need in a timely fashion to pay your working business costs and prior loan repayments. Some factors to consider may be shortening your payment cycle, employing new invoicing and billing software, and offering an early payment discount system to encourage customers to submit early payments.

Paying your vendors in a timely fashion can also go a long for conserving your cash flow issues. Believe it or not, paying your vendors on time can have a hugely beneficial impact on your business. By having fewer days of accounts payable outstanding you can build a better relationship with your vendor and through trust and partnership broker better deals, payment terms, and even negotiate discounts.

The last thing that a business should consider after or before taking out a working capital loan is a reinvestment of your business. Redirecting money back towards your company is ideal, and a great way to do that is by taking a hard look at where improvements can be made and reinvesting in your business. That can mean buying a new piece of equipment, machinery, or vehicle to improve productivity or investing in marketing and events that can improve your sales and exposure.

Is a Working Capital Loan Right for Me?

Working capital loans are great in the short-term, but there may be other loan types Fundygo offers that better suits your capital acquisition needs. For example, SBA Loans have a longer turnaround time but can provide great terms of contract for a long-term loan for your business. Additionally, revenue-based loans may be a great solution for the smaller business that needs capital to get their feet off the ground without negatively affecting the business when they can’t afford it.

Why is Working Capital Beneficial?

Access Volume Discounts

Smooth Operations



Increased Opportunities