Working capital is strong option to cover unexpected expenses or create additional buying power. It works by usually putting a lien on the assets of the company to collateralize the loans. Cash is received in whole allowing the business to engage immediate opportunities.
Revolving lines of credit are secured by the borrower’s receivables and/or inventory. Typically, this type of financing is used to increase cash flow and working capital. It is a percentage of the company’s outstanding accounts.
Working Capital (692.8 KiB)