Clix > Business > Six Ways of Raising Working Capital for Businesses

Six Ways of Raising Working Capital for Businesses

Clix June 22, 2018

Working capital is what fuels every business. And the mantra behind having sufficient funds is to strike the right balance between your assets and your liabilities. The challenge that most organizations face is in keeping the scale tipped towards their assets and maintaining a healthy credit rating. So read on to find out about the best ways to raise your working capital.

  • Managing Trade Credit

It’s important to maintain a good rapport with your trade creditors. They  provide trade credit in the form of business supplies and equipment that can be paid for at a later date. Such an arrangement can give you time to raise more funds and eventually repay these creditors. Do keep in mind that trade creditors gauge your business volumes, previous payment records, and current liquidity status before they grant you trade credit.

  • Bank Overdraft

A bank overdraft is a speedy way of raising short-term funds as it helps with withdrawals over current account balances. The overdraft limit, however, depends on your credit history, business turnover, collateral assets, and the reason for the overdraft.

  • Working Capital Loans

There are two types of working capital loans you can choose from to suit your needs — secured and unsecured loans. These loans are known to boost a businesses’ money reserves, either in the short or medium term.

  • Invoice Discounting

Out of all the forms of invoice financing, invoice discounting is the simplest and the most accessible, in which, invoices and account receivables can be used as collateral assets. This short-term mode of raising funds and rotating money can help you cater to more business volume.

  • Merchant Cash Advance

If your business accepts payment through cards, then you might want to use the option of a merchant cash advance to raise your working capital. Lenders grant an advance lump sum that is usually repaid through regular card receipts on your POS machine. So, if your business doesn’t have large assets but has regular card transactions every month, merchant cash advance is meant for you.

  • Revolving Credit Line

This is an arrangement you can make with your lender, creating an always available line of credit ( upto a certain limit), that can be repaid at your convenience — as a lump sum or in installments.

From a working capital loan to a revolving credit line, the options of raising your working capital are numerous. All you have to do is assess what suits your business best and make an informed choice. Thankfully, today, all these options are highly accessible and reliable.

88 Replies to “Six Ways of Raising Working Capital for Businesses”

  1. Very nice post. I just stumbled upon your blog and wished to say that I have
    really loved browsing your blog posts. In any case I will be subscribing for
    your feed and I’m hoping you write once more soon! asmr 0mniartist

  2. Tеrrific article! Tһis is the kind of information that should be shared acroѕѕ thhe
    net. Disgrace on Google for not positioning this sjЬmit upper!
    Come on ovcer and dіscusѕ with my wweb site .

    Thank you =)

    Take а look at my blog; payday loans minnesota

  3. Hello there! Quick question that’s entirely off
    topic. Do you know how to make your site mobile friendly?

    My blog looks weird when browsing from my iphone 4.
    I’m trying to find a template or plugin that might be able to correct this issue.
    If you have any recommendations, please share.
    Cheers! 0mniartist asmr (

  4. Heya i’m for the first time here. I came across this board
    and I to find It truly helpful & it helped me out a lot.

    I am hoping to present one thing back and help others like you aided me.

    Here is my web site :: but asmr

  5. hi!,I really like your writing very much! share we keep up a correspondence
    extra approximately your post on AOL? I need a specialist in this
    house to resolve asmr my problem.
    May be that’s you! Having a look forward to see you.

  6. Good day! I could have sworn I’ve visited this site before asmr but after going through
    some of the posts I realized it’s new to me. Nonetheless,
    I’m certainly pleased I stumbled upon it and I’ll be bookmarking it and checking back regularly!

  7. great submit, very informative. I wonder why the opposite
    specialists of this sector do not understand this.
    You should continue your writing. I am sure, you’ve a huge readers’ base already!

    Visit my web site – gamefly and

  8. Wow! After all I got a weblog from where I can genuinely obtain helpful information concerning my study and knowledge.

    Here is my blog: asmr (

  9. Hello this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding knowledge so I wanted to get advice from someone with experience.
    Any help would be enormously appreciated!

    Here is my blog post; that asmr

  10. My brother suggested I may like this blog.
    He was once entirely right. This put up truly made my
    day. You cann’t imagine simply how much time I had spent for this information! Thanks!

    Also visit my blog post – an asmr

  11. Great blog on this topic, It has a lot of information about Financial Solutions | but if you want more details so please visit my blog-Financial Solutions


Guide to Boost Your Personal Loan Eligibility

  Personal loans are unsecured loans that you can flexibly use to pay for diverse expenses, be it a wedding, …

What to Do If Your Credit Score Has Reduced & How to Improve it

  Credit score is a 3-digit number that indicates your repayment habits and credit history. Credit bureaus give you this …

6 Secrets You Need to Know About Personal Loans

  People turn to personal loans whenever they need funds to meet their expected or unexpected expenses, such as a …