Products & Services
Working Capital Loan
Do you know if you need a working capital loan? Sometimes your business needs excess cash. You might need the money for a few months… or maybe longer. Armada makes it easy for you to get working capital for your business and provides additional sources of capital outside of your main bank facility.
You can use your working capital loan to:
- Expand your business, grow new markets, develop new products, protect intellectual property, launch a marketing campaign
- Improve profits by paying suppliers upfront to get special discounts or investing in systems and infrastructure that are not suited for capital equipment financing
- Purchase inventory to take advantage of one-off discounts or fulfill orders quickly
- Hire and train employees
- Obtain licenses, accreditations, and certifications for your business and employees
- Pay unexpected costs such as back taxes or emergency repairs
Businesses that typically benefit a working capital loan:
- Your business might not qualify for a traditional bank line of credit for all or a portion of the amount of money your business needs
- You prefer the quick and simple application process
- There is an immediate cash requirement, so you need a credit decision in as little as 1 business day
- The minimal transaction costs are attractive
- Advances are processed quicker than a typical bank loan, giving your business quicker access to capital
There are several types of working capital loans. Here are the most common:
- Merchant cash advance – Your business uses its future cash flows to borrow money today for working capital purposes. The lender analyzes the borrower’s historical cash flows (typically the last 6 – 12 months of bank statements and/or credit card receipts) and determines the amount to advance and the repayment terms. Payments are typically made daily, weekly, or monthly. This form of
- Purchase order financing – allows you to fulfill large purchase orders without the stress. When your business is growing, sometimes sales can get ahead of revenue. Purchase order financing gives your business access to funds to buy products to fulfill orders. Our funding partners advance funds directly to your suppliers and your customers repay the purchase order financing when you fill the invoice.
- Receivables/Invoice factoring – Help your cash flow by collecting immediately on your invoices. In a factoring transaction, your business sells qualifying unpaid invoices to a factoring company at a discount. The factoring company typically pays your business 75% – 90% of the invoice cost upfront and then the rest of the funds after your customers pay. Fees are based on the riskiness of the transaction plus the time it takes your customers to pay.
- Inventory financing – Simply put, this is a line of credit that is collateralized by your inventory. This is a revolving credit facility where you draw funds as needed to pay your suppliers and then repay the lender as you sell that inventory. This type of lending is well-suited for businesses whose inventory consists mainly of finished goods, like capital equipment vendors.
If you would like to find out more about how a working capital loan can help you grow your business, please contact us today at 1-877-583-5989 or firstname.lastname@example.org.