As more people get vaccinated and restrictions start to get lifted, businesses are eager to reopen and provide products to people who need them. However, a little more than a year of lockdowns has left businesses in dire need of working capital. Fortunately, there are ways for businesses to get the capital they need without taking on unwieldy amounts of debt.

Using MCAs for Working Capital

As we enter spring, traditional lenders are still raising their requirements for collateral and credit ratings, making it difficult for businesses to secure the working capital they need. A merchant cash advance (MCA) offers a viable alternative without placing debt on the books. A merchant cash advance is an infusion of working capital that businesses can use for anything they need. MCAs are not structured around collateral or profitability. Instead, they are structured around the overall sales and profitability of a business. Unlike traditional loans, MCAs are not repaid through rigid monthly installments. A merchant cash advance is repaid from a small percentage of customer purchases made with credit cards. This gives businesses the flexibility they need to repay the balance owed without placing an unnecessary strain on cash flow.

Unsecured Business Lines of Credit

Unsecured business lines of credit provide new and existing companies with an additional source of working capital. The major difference between regular lines of credit and unsecured business lines of credit is that no collateral is required to secure working capital. Much like a merchant cash advance, the funds provided by an unsecured line of credit are considered discretionary, meaning a business can use the capital for minor purchases, large opportunities, supplies, marketing, or anything else they need. Additionally, the introductory rates on unsecured lines of credit are very low, making them accessible to new and small businesses, as well as existing and growing companies.

Get the Working Capital Your Business Needs

Golden Century Lending provides both merchant cash advances and unsecured lines of credit to businesses in need of working capital To get the financing you need to re-enter the marketplace as we come out of the pandemic, contact the experts at Golden Century Lending.