Working Capital Financing for Your Business
Depending on the nature of your business, the level of cash at your disposal may ebb and flow. Be prepared with working capital financing solutions for your business.
Working capital is what keeps your business going day in and day out. It’s essential for meeting short-term obligations — such as paying vendors and employees — and keeping daily operations running. Having working capital on hand provides the cash needed to pay overhead costs for everything from raw materials and supplies to maintenance expenses, rent, insurance and utility bills.
The level of working capital your business has at its disposal may ebb and flow, which is why you want to be prepared with solutions when cash is tight. Depending on the nature of your business, you may need to plan for seasonal shifts in cash flow or periods of decline in business activity.
Types of Working Capital Loans
Choosing a loan that’s right for your business depends on your capital needs, assets, timeline and business credit profile. At Amegy Bank, we offer a range of working capital loans that can be customized for your needs:
- Business lines of credit[cite::2149::cite] provide a flexible way to finance short-term working capital needs with a revolving line of credit that can be borrowed again as it is repaid. When you’re short on cash, you can close the gap with a business line of credit.
- Term loans[cite::2149::cite] have a fixed interest rate and a repayment term from one to seven years. A term loan may be used to raise working capital or refinance existing debt at a fixed rate. Learn more about how to meet your borrowing needs with a business term loan.
- Equipment financing[cite::2401::cite] can be structured in various ways to meet your needs for buying or leasing business equipment or vehicles. A lease typically doesn’t require a down payment or collateral, and a short-term lease allows you to respond to the changing needs of your business without tying up working capital in equipment assets. Whether you decide to buy or lease your business equipment, we can help you secure equipment financing that makes sense for your business.
- Invoice factoring[cite::2149::cite] is a nontraditional working capital financing structure that involves the discounted purchase of qualified accounts receivable, such as eligible invoices from a completed product or service. Invoices are sold in exchange for working capital minus any fees. Invoice factoring is typically viewed as a bridge financing for a period of 6 to 36 months, and is reserved for certain situations when a business is experiencing rapid growth or going through a financial transition.
You can count on Amegy Bank for working capital solutions designed for your business. Together, we can find innovative ways to maximize your working capital and keep your business running efficiently. Contact a business banker to learn more.