Working Capital Ashford Finance Investment SBA Loans Business Funding Line of Credit International Loan

WORKING CAPITAL

Working capital financing refers to the funding companies need to run their day to day operations as opposed to long term funding needs, large capital expenditures, etc.

Working capital financing can be in the form of a line of credit renewal every year. The credit facility varies from being flexible to being very structured depending on the funding required and the financial strength of the Borrower. Generally a well financed company will have working capital short term financing, medium and long term financing. The more complex the Borrower, the more complex will be the financing structure and vice versa.

For more cash strapped companies or rapidly growing companies, working capital financing is either a structured asset based financing, factoring or Purchase Order financing. This last type of financing is unique because not only does it provide unlimited financing to purchase pre sold inventory to satisfy purchase orders but also to carry the financing through the receivable cycle. Purchase Order financing, if available is unique of all the working capital financing because it is in essence transactional venture capital.

The different sources of Working Capital Financing are:

• Commercial Banks
• SBA
• Factors
• Specialized Asset Based lenders
• Purchase Order Financing companies
• Suppliers
• Venture Funds
• Private Financing sources

Each of the above funding sources has their applications. The borrower should clearly understand its specific needs and find the right type of lender otherwise a miss fit can be costly and time consuming.

Working Capital management is an art which requires the Borrower to have a clear handle as to its Operating and Non-operating sources and uses of funds and to have a clear handle as to the reason for the shortfall and how best to fund this need. A mismatch between a funding need and source and type of funding used can cover up problems that will surface at a later date with extra vigor and cause serious disruption to the smooth running of the Borrower’s operation.

Contact Ashford Finance to find creative solutions and funding to your Working Capital needs.

Financing Application (pdf version, click to view, complete and print) If you have valid Purchase Orders and you are unable to obtain funding to purchase the goods call Ashford Finance for 100% funding.

Phone 212.532.9030 X26
	Purchase Order Financing
	Import Financing
	Export Financing
	Letters of Credit
	Invoice Factoring
	Working Capital
	Forfaiting
	About Ashford Finance
	FAQ's
	Finance Case Studies
	Site Map
	Home
	Contact Us
	Financing Application


Ashford Finance 50 Broadway 33rd Floor New York, NY 10004 Phone: 212.532.9030 x26 Fax: 212.202.5068 or 212.532.9034

Ashford Finance 50 Broadway 33rd Floor New York, NY 10004 Phone: 212.532.9030 x26 Fax: 212.202.5068 or 212.532.9034

Purchase Order Financing Import / Export Financing Domestic Financing Letters of Credit Invoice Factoring