A loan for working capital can carry a business for shorter term operational needs such as debt repayment, employee payroll, contractor payments, or rental fees. If your company has limited liquidity for managing situations where the current cash flow keeps you from achieving your goals, a working capital loan may be what you need.
Working Capital Loans (WCL) Product & Criteria:
- Loan Type: Traditional bank/term loan with interest fully amortizing over the life of the loan (fixed monthly payments)
- Loan Size: $25,000 – $500,000
- Loan Term: 1-4 Years
- Interest Rates: Starting from 8.99%, depending on other factors
- Origination Fee: 4%
- No Prepayment Penalties
- Secured by filing a UCC on the business assets with a personal guarantee
Get Through a Dry Spell with Working Capital Loans
Businesses with established demand cycles are often limited during periods of low demand. This “feast or famine” cycle is also a major reason why businesses fail to engage new opportunities that don’t fall within those trend cycles, as is the case for construction and development companies.
Cyeron Corporation can work with you to gain access to alternative lending sources for working capital, allowing you to tackle the opportunities you seek:
• Payroll for Employees and Contractors
Working capital can help you prevent a failure to make payroll, which can be a demotivating factor for your hard-working employees, contractors or other temp help. This can be the case when you’re in-between projects, during off-season periods or when low demand causes a bubble in your revenue generation.
• Access to Funds Beyond Traditional Banking
Banks have tolerances on how much risk they can take on when letting businesses borrow money. Quite often banks use the same measuring stick to approve or reject loan applications for working capital. It is during those instances that alternative funding for working capital can deliver the funds you need to ensure future prosperity.
• React Quickly to Opportunity
Tackle opportunity with confidence, even during shortages in business cash flow, to effectively purchase inventory, prepare for increase demand or start a project when you have a signed contract. In addition, maintain your business credit rating by continuing to pay debts until the grass is green again.
• Fulfill Operational Needs
Beyond short-term debt obligations, the need for working capital also covers maintenance costs, fleet repairs, licensing renewals, or covering the costs of cyclical renewals that occur during low business demand periods. There is no reason to fail at growth when you can get access to working capital loans.
Let Cyeron Corporation find a better way to finance your business needs. Use one of the buttons below to contact Tony Dely and let him work to ensure your interests are well served.
The lenders’ estimated timeline for a working capital loan processing is as follows:
- Within 48-72 hours Cyeron receives an update on whether the loan is approved or declined. If approved, the lender may require additional information.
- Once approved, the lender will make a courtesy call to its new client to review the terms, rates and payments. At that point they may address any question or comments related to the process.
- If everyone is in agreement with the proposed terms, the lender will email you within 24 hours a contract outlining the Terms and Conditions of the loan.
- Once executed via DocuSign, the funds are wired into your business account within 24 hours.
- Assuming there are no issues and/or delays (such as additional information required), the loans can usually fund within 5-7 business days.
While we cannot guarantee that this is exactly as it the process will happen, it is an estimated timeline based on our experience. Clients should be aware that they are under no obligation to accept the loan offering, if the term, rate and payments are not 100 percent acceptable.
Also, feel free to contact us at any point with questions and comments to help you understand how to navigate the process.
Additional Working Capital Loan Information
Working Capital Loans General Requirements:
- Company Overview
- Minimum/maximum amount of capital needed
- Use of funds
- Time in business
- Number of locations
- Number of employees
- Client credit score and/or any current issues
- Home address (own or rent?)
- Home’s estimated value (if owned)
- Owner/owners’ date of birth
- Contact information for all owners
- Main business phone number
- Cell phone numbers
- Email addresses
- Website address
Payroll for employees and contractors
• Rent payments for your facilities
• Unplanned maintenance or repairs
Working Capital Loan Pre-qualification Criteria:
- Borrower FICO > 660
- Operating History: at least two (2) years
- Business Revenue: at least $150,000 in the most recent tax return year
- Profitability: Business net income > 0 in at least one of the prior two (2) years (case by case basis)
- Business Structure: NOT a sole proprietorship or non-profit
- Tax Liens: No more than five (5) active tax liens in the last ten (10) years, as well as no boundaries (personal or business) in the last three (3) years, and no criminal activity
Working Capital Loan Documentation Requirements:
- 2019 Form 1120 business tax returns (all schedules)
- 2019 Form 1040 personal tax return of the borrower’s most-recently filed business owners with < 20% ownership (all schedules)
- Percentage of ownership, if more than one owner
- The past three (3) months’ business bank statements (all pages)
- Business Debt Schedule
- 2020 Year-to-Date P&L (Profit & Loss), Income Statement and Balance Sheet
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