Working capital finance and lines of credit can both support business cash flow, but they are not the same.
What is working capital finance?
Working capital finance provides funds to support day-to-day business operations such as wages, supplier payments, rent, inventory and short-term expenses.
What is a line of credit?
A line of credit gives the business access to a revolving credit limit. You can draw funds when needed and repay them as cash flow improves.
Key differences
Working capital finance may be a fixed loan with set repayments. A line of credit is usually more flexible and can be reused, but lenders may assess it more carefully.
Which option may suit your business?
Working capital loans may suit short-term funding needs. A line of credit may suit businesses with ongoing cash flow fluctuations or seasonal requirements.
What lenders assess
Lenders review revenue, bank statements, repayment conduct, business history, credit profile and funding purpose.
How Nine Fincap can help
Nine Fincap can review your business cash flow and compare suitable funding structures.
Not sure which option suits your business? Find the Right Business Funding Option with Nine Fincap.
Disclaimer
This information is general only and does not consider your business circumstances. Lending is subject to assessment and approval.