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Working capital is the cash used to pay current expenses and continue operations. It is calculated as the difference of all current assets (cash, accounts receivable, marketable securities, and inventory) less the current liabilities (short-term debt payments, payments to suppliers and vendors, accounts payable, and taxes that are owed.)

Additional working capital is needed when a business is just starting up and sales revenue is in the early stages. It is also needed during the times that a company is growing rapidly, or during seasonal slumps.

Working capital loans can help a company move forward with many needs including overcoming problems with paying salaries, increasing inventories, purchasing new equipment, dealing with unforeseen emergencies, and simply paying for current operations. Lack of working capital can impede business growth and discourage investors.

How to Get Working Capital

Here are some ways to get additional working capital, including working capital loans:

Collect payments from customers more rapidly. This can be facilitated by negotiating faster payment terms, invoicing more quickly, accepting more means of payment including credit cards, discounting early payments, and penalizing late payments.


Requesting upfront deposits for major purchases.

Seek peer-to-peer lending sources, often done via online lending platforms.


Secure funding by selling unpaid invoices to a third party to get paid immediately.

Seek SBA loans that are guaranteed through approved partnering banks and credit unions. These are typically longer-term loans that can provide a major safety net. These loans require longer process times and have some strict requirements.


Obtain traditional bank working capital loans.

Seek Expert Financing Assistance

Contact Spearing Capital & Consulting. We strive to provide the best in commercial finance consulting along with a strong financial portfolio of loans to help your business grow and flourish.