To survive and thrive fruitfully, every company needs enough working capital on the table so it can efficiently carry out the ordinary tasks of the business entity. Working capital, being current liabilities subtracted from current assets, should be positive for companies to grow and expand. However, it is becoming harder to get Business Finance Working Capital due to the shutdowns to prevent the spread of corona virus and thus most small businesses are developing negative working capital.

The Common Methods of Financing Working Capital

Before plunging into how small business owners can get their working capital financed in these hard times, let us go through the other ways for businesses to finance their working capital. The common and effective ways other than Working Capital Loans for Small Business are as follows:

·Trade credit/vendor credit

·Business Line of credit

·Invoice financing

·Invoice factoring

·Business credit cards

·Merchant cash advance financing

These methods work differently and help businesses manage their working capital depending on the need of the businesses. Credit periods simply give a stipulated duration to clear the bills. Business of line credit needs tone to qualify for it and has great advantages. Invoice factoring, as the name indicates, involves another entity taking over a large percentage of your invoices in return for the remaining part. Invoice financing is somewhat similar, the difference being that you have more control here. In these ways, the Business Finance Working Capital is attained usually.

Small Business Administration Loans

To combat the crisis faced by businesses, the US Small Business Administration has enlarged its pool of funding to $50 billion from $20 billion. For those businesses suffering losses, up to $2 million disaster loans with low-interest rates are being offered. According to the SBA, these loans can be utilized in payment of debts and covering payrolls and other bills which require working capital. Besides, many states have also set up their relief programs that fall under Government Guaranteed Lending.

State-Funded Financing Options

Many states in the US are trying to enable businesses to fight the economic disaster by setting up various financing options and schemes. Some of them are discussed here.

·Denver Small Business Emergency Relief

Businesses in Denver that fall under the categories of barbershops, salons, retail stores, and restaurants can receive a grant of up to $7,500.

·San Francisco COVID-19 Small Business Resiliency Fund

Businesses in San Francisco having 1-5 employees, receipts under $250,000, and loss in revenue over $2,500,000 will qualify for this fund relief.

·City Of Los Angeles Small Business Emergency Microloan Program

Low-income jobs providing businesses in LA may qualify for this option which can provide them from $5,000 to $20,000. The prerequisites for this program are to have “reasonable and responsible” credit and that the financing should Apply for Working Capital.

·Florida Small Business Emergency Bridge Loan Program

To qualify for this loan, one needs to have 2-50 employees, be Florida-based, be profit-motivated, and to have completely paid any previous bridge loan. The funding ranging from $50,000 to $100,000 is to be applied as short-term funding.

·Chicago Small Business Resiliency Fund

Businesses based in Chicago that have gone through a 25 percent decrease in revenue and having total revenue less than $3 million, less than 50 employees, no standing legal judgments, and no tax liens are eligible for this fund. Funds of up to $50,000 can be received depending on the revenues before the crisis.

Besides these, other such significant funds and loans are available in the states of Michigan, Iowa, Washington, New York, and Oregon. Conclusively, it can be said that those small businesses who are facing difficulty managing Business Finance Working Capital, can receive help both from authorities and through other financing companies. Those businesses that do not fulfill the criteria for state and federal loans and funds will have to choose the latter and can know more through Capital Hero LLC.