Need More Working Capital
Long-term (more than one year) working capital is the most difficult item to finance. Most banks rely on Lines of Credit (LOC), which are less than one year loans. As companies grow is has a permanent need for additional working capital as more funds get tied up in inventory. This is called permanent working capital.
Other times companies land major contracts and need a short-term flux of capital for a single project.
There are a few ways companies can find additional permanent working capital while growing, especially if additional equipment or buildings are needed.
- Check out the working capital programs.
- Ask about guarentee programs for lines of credit.
- Explore tax credits for additional operating income.
- Use mezzanine financing programs.
- Look to non-traditional lenders.
- Look at workforce training grants to offset costs.
- Access technical resources to become more efficient.
- For high-tech and potenital start-ups (sales growth of $1 Million or more per year) look at equity programs.