Money, Money, Money: A Blog

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Money, Money, Money: A Blog

They say that money makes the world go around. In some ways, that really is true. As a society, we have decided that money is a way that we are going to exchange and represent value. When you do work and that work has value, you are paid money — which is a symbol of that value. If you like this sort of deep information about money, then we encourage you to keep reading on this blog. There are a lot of deep insights to be had here. While some of them may seem theoretical at first, they are all applicable to your financial life in some way.



The Top 3 Benefits Of Working Capital Business Loans

Working capital business loans are truly unique when compared to traditional business loans. This is because working capital loans are provided by payment processing companies and allow you to borrow against your future credit card sales. There are many benefits that come along with choosing to obtain this type of business loan. Below you can learn more about three of the most impressive benefits that come with choosing a working capital loan.

#1: Working Capital Loans Are Much Easier To Qualify For

Traditional business loans will require you to meet minimum credit requirements in order to qualify for the funding you need. This can be a problem for some business owners who have yet to establish good business credit. With working capital loans, there is no need to worry about your credit score. This is because since working capital loans allow you to borrow against future sales—whether or not you qualify for this type of loan will be based upon your past sales. The more sales you process, the more money you will be eligible to borrow. 

#2: Working Capital Loans Do Not Have Standard Interest Applied

When you obtain a traditional business loan you will need to repay the amount you borrowed plus interest. How much you pay in interest will depend upon your creditworthiness, how much you are borrowing, and how long it takes you to repay your loan. In many cases, this type of repayment structure can make borrowing money very expensive over the long term. Working capital loans are different in the fact that they do not require you to pay interest. Instead, working capital loans will require you to pay back the amount of the loan and a fixed rate fee. This means that you will always know the total cost of borrowing money when choosing a working capital loan. 

#3: Working Capital Loans Are Convenient To Repay

Traditional business loans will require you to make a monthly loan payment in the same amount every month regardless of how many sales you have that month. This can put financial strain on your business if your sales fluctuate from month to month. With working capital loans, a portion of all credit card sales is kept by the lender to repay your loan. This means that you only make payments when you have sales. Consequently, you will never need to worry about making a large loan payment during times when your sales are slow.