Small business owners need working capital for a variety of reasons – meeting payroll, managing slow receivables, dealing with unexpected expenses, and investing in future growth. Online working capital loans make it even easier for business owners to get access to quick cash, because the approval process tends to be faster than a traditional bank loan, and the money is typically available in the form of a flexible line of credit that allows the business to borrow and repay as much or as little money as they need each month (subject to credit limits, minimum repayments and other specific terms of the loan, etc.).

Where Small Business Loans Help

Here are a few of the ways that small business loans increase funding for resources that business owners need most:


Many business owners use working capital for marketing expenses, such as online ads, social media sponsored posts, Pay Per Click search ads, new website development, and other marketing-related expenses. Borrowing from an online lender gives you the flexibility to invest in your business’s growth on short notice – and you can measure the results of your marketing campaign and get additional working capital as needed to put more money into the marketing tactics that deliver good results.

Buying Inventory

Any small retail business needs to have the ability to buy new inventory, especially if you spot a great deal on short notice. Online small business loans are exceptionally flexible for inventory purchases. Whether you need to stock up on inventory for a busy shopping season, or if you want to have access to capital as needed to take advantage of a great deal on hard-to-find inventory, small business loans can help small retailers stay ahead of the competition.

Covering Slow Receivables

Sometimes small business owners find themselves in a cash flow crunch because their customers and clients have been slow to pay their bills. If you’re dealing with slow-paying clients, access to a line of credit or working capital loan makes sure you can keep paying your bills while you wait for customers to pay theirs.

Office Relocation/Expansion

Do you need new office space, or do you want to expand your current business headquarters? A small business loan can give you a quick infusion of cash to pay for the short-term costs of expansion before the benefit of the new space is reflected in your business’ revenue.

New Product Development

Got a great idea for a new product, or a way to expand your existing product lines? Small business loans help get your idea off the ground by giving you an additional source of cash to develop, test and market your new product, outside of your current business income.

Buying New Business Equipment

Business equipment can be expensive, whether it’s new computers, office furniture or other capital-intensive investments. This is where a working capital loan can help – by giving you a source of cash to help pay for one-time expenses.

Unexpected Expenses

Every business needs an “emergency fund,” and if your company is still new and growing, or if your emergency savings fund is not as robust as you would like it to be, getting a small business loan or line of credit can be a good solution to help cover unexpected losses or expenses. Working capital can help keep your business afloat while you work toward more profitable times ahead.

Small business loans can be whatever you make of them – it all depends on your business’s needs. But these are a few of the most common ideas for how business owners use working capital loans. Ideally, a working capital loan or line of credit can help your business deal with the ups and downs of the business cycle, and help you continually reposition your company for greater success.