What is a working capital business loan?
Working capital is the money that your business needs to pay for its day-to-day operations. This includes things like the salaries of your employees, the rent for your office, the cost of inventory, and paying suppliers. Working capital loans are designed to help businesses cover these costs while they wait for their regular revenue to recover from seasonal fluctuations or other temporary hardships.
Working capital loans are small business loans that can be used for various working capital needs, such as inventory, payroll, or marketing expenses. It covers the everyday expenses that can strain your cash flow but are required to keep small businesses operating smoothly.
Working capital business loans are typically short-term loans with loan terms of up to 24 months and a higher interest rate than traditional long-term loans. However, they can be a good option if a business owner needs to access funds quickly to cover short-term current liabilities and ensure the short-term financial health of their business’s working capital when funds are below the norm.
How to get a working capital business loan
Apply for working capital loans from OnDeck and your business can get between $10,000 and $250,000 in as fast as 2 hours.
For amounts up to $150,000, we can make decisions in minutes. The application process can be completed and the funds transferred to your business bank account in as few as 2 hours.
For more complex applications of up to $250,000, the whole process can be completed in as fast as 1 business day.
Get those unpaid invoices paid today by applying for a working capital business loan.
After taking out a loan from OnDeck, choose from our flexible repayment plans that allow you to repay the loan and any interest rates with weekly payments over a minimum term of 6 months and a maximum of 24.
How a business loan can improve your working capital
There are many ways a working capital business loan can help your small business. For example, you can use the loan to:
If you’re running low on inventory, a working capital loan can help you restock. This is especially helpful if you sell seasonal goods, or your products have a short shelf life.
If your business is struggling to make ends meet, a working capital loan can help you cover your employees’ salaries. This can prevent layoffs and help you retain top talent.
Cover unexpected expenses
Unexpected expenses can come up at any time, such as repairs or replacements. A working capital loan can help you cover these costs, so they don’t put a strain on your business.
Update old equipment
While the loan covers your current liabilities and operational costs, you can put more of the income generated towards improving your business’ equipment and processes to improve your capabilities, streamlining future earning potential and max net working capital.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at October 2022. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.