What is a working capital loan?
Working Capital Loans are short-term loans often used to assist a business’ operational needs and cover day-to-day expenses. Unlike different types of finance, working capital loans are normally designed to cover immediate needs and not longer-term business goals.
This can often mean that they are meant to be repaid faster than other types of finance, in many circumstances in under 24 months. Working capital loans were typically provided by banks, but nowadays there are many modern alternative providers on the market.