SUITABLE BUSINESS LOANS & COMMERCIAL FINANCE
Working Capital Finance
Operate your Business
We have working capital solutions to help your business meet short term day to day operational costs from paying your suppliers and employees to keeping the lights on.
Deep Industry Expertise
We have deep industry expertise and knowledge gained through actual hands on experience in industry. We build long standing relationships with customers and can understand your business and industry sector.
Broad Industry Experience
Unique to Suitable Loans we have actually worked in industries such as Building and Construction, Materials, Manufacturing, Telecommunications, Music, Arts & Entertainment, Retail, Government, Automotive, Education, Information Technology, Healthcare, Financial Services
We are your
Trusted Advisor
You have our Business & Commercial Finance team behind you to support you through the financing process and beyond. We negotiate with lenders and look after your best interests.
Reasons for additional Working Capital
- Seasonal differences in cash flow which may require additional working capital to ramp up for a busy season or to keep the business operating when there’s less money coming in.
- Most businesses will have a need for additional working capital at some point to pay employees, suppliers, and the government while waiting for payments from customers.
- Pay employee wages during slower periods
- Enables you to take advantage of supplier discounts by purchasing in bulk.
- Pay temporary employees needed to fulfill a new contract or to cover other project related expenses.
- Generally you only start making repayments once you have drawn down on the approved working capital funds
- Because working capital finance can be used by a business for such a wide variety of reasons lenders generally don't require detailed information about what the funds will be specifically used for.
What is Working Capital and why is it important?
- Working capital tells you about the current short term financial health of your business.
- It shows whether a business has enough short term assets to cover day to day operations and short-term debt.
- Its the difference between current assets and current liabilities found on a business balance sheet.
- Current Assets are those that can be turned into cash within the next 12 months.
- Current Assets can include accounts receivable, prepaid expenses, cash, inventory, and marketable securities.
- Current Liabilities are the costs and expenses a business incurs within the next 12 months.
- Current Liabilities can include accounts payable, wages payable, interest payable, income tax payable.
- To get a true understanding of your working capital needs take a look at the month by month inflows and outflows for your business.
- These projections can identify months when you have more money going out than coming in, and when that cash flow gap is widest.
- This can help you determine if you would benefit from working capital finance solutions
