A working capital line of credit is a type of business line of credit that’s meant to cover operating expenses, like inventory, supplies, utilities, and payroll.
Working capital lines of credit can help you cover operating expenses like inventory or supplies.
A working capital line of credit is a type of business line of credit that’s meant to cover short-term operating expenses. You can use a working capital line of credit to cover costs, such as rent and utilities, inventory, supplies, emergency expenses or payroll.
Typically, working capital lines of credit are not used to cover large one-time purchases. If you need that type of funding, a business term loan is likely going to be a better fit instead.
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A working capital line of credit is a type of business line of credit that’s meant to cover operating expenses, like inventory, supplies, utilities, and payroll.
Most lenders prefer that you have a two-year business history before they approve you for a working capital line of credit. But it’s possible to find lenders with a shorter time in business requirement or even no firm requirement at all.
If you have an established business and a strong credit profile, you’ll have an easier time qualifying for a working capital line of credit. Startups and those with bad credit may need to choose their lenders carefully. Be sure to evaluate each lender’s requirements before applying to increase your odds of being approved.