Working Capital

A working capital loan is a generic term used to describe financing offered to a business for the purpose of covering day-to-day operating expenses. These are normally shorter term loans secured by a lien against business assets, but can also be unsecured. Working capital loans are frequently used to cash flow shortages caused by unanticipated expenses or by “seasonal” business to cover expenses in their slow period. BFC’s can make 1 to 10 points on the amount of the transaction.

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