If you run a business with expenses, you need working capital. What is working capital? Basically, it’s the cash that a business has on hand for current and short-term business operating expenditures. This includes things that are your non-negotiables, like utilities, payroll, taxes, and rent. These expenses are due regardless of the state of your business.
You need positive and healthy working capital for a business to not only survive but also for it to be successful. It ensures that business operations continue to run smoothly without any interruptions or hiccups.
Here are some benefits of a working capital loan :
- Provides reserves during a rough patch such as a global pandemic
- Gives the ability to expand your business or explore other markets
- Helps with the acquisition of revenue-generating initiatives
- Allows you to purchase inventory before the busy season in your industry
- Supports the hiring and training of additional staff
- Assists with tax payments
How a Working Capital Loan can help you with your business taxes
Let’s face it, there is no running away from taxes. But there are tactics you can use to help make paying them easier on you and your business.
Many small businesses run on thin margins so when the time comes to pay taxes suddenly you are facing a huge dip into your operating capital. It’s almost like paying a full year’s rent on your move-in day. Wouldn’t it be easier if you could pay it out over 3-12 months instead?
That’s exactly what a working capital loan provides.
It ensures you don’t have to stockpile cash for months prior to tax season. Instead, you can get a competitive business loan that you have several months to repay, freeing up some of your profits, while also paying your balance in full.
What about the interest that comes with a loan?
Did you know the IRS charges interest on the outstanding taxes that are due? That’s right – they treat your balance as a loan and charge a 4-6% interest rate on it. Not only that, but they can also charge late fees (steep ones), place tax liens, or even go after your personal taxes and claim them in place of the missing amount. Tax liens usually have a rather severe impact on your credit history and can drive down your business and personal credit, making it harder to secure credit in the future. This is why low-interest working capital loans can be so beneficial in these situations – you can actually save money and protect your credit and reputation while paying the full amount on time. Now that’s a win-win.
Choosing the right offer for your business
The business loan process at banks is traditionally slow and complicated. They require extensive paperwork, heavily scrutinize your credit, and impart high fees and interest rates. Whereas at AFG, we make sure our working capital loan process is FAST, EASY, and low risk.
You can feel secure knowing you are partnering with a trusted lender who offers affordable rates and a smooth and hassle-free process so you can concentrate on your business. We’re here to make it simple for you to get the cash you need without surprises, hidden fees, or penalties.
Interested in applying for a working capital business loan?
It’s easy – you can apply online with just a few essential documents. Once approved, the funds reach your business account within 24 hours.
Apply now and get up to $150,000 almost instantly.