Working capital is the lifeblood of any small business. When it runs low, growth stalls and stress climbs. Here are five signs you should consider a working capital loan.
1. Payroll is getting tight
If you're juggling cash to cover payroll, it's a sign your operating cash isn't keeping up with your obligations.
2. You're missing growth opportunities
A bulk inventory discount or a chance to take on a larger contract is hard to capture without ready cash.
3. Seasonal swings are painful
If your revenue swings 30% or more between seasons, working capital can smooth the ride.
4. You're paying suppliers late
Late payments hurt your supplier relationships and your buying power.
5. You're using personal credit for business expenses
Mixing personal credit cards into business operations is a red flag that working capital is insufficient.
