How to Obtain Working Capital for Small Business Financing

As a small business owner, you know the critical importance of timely and adequate small business financing. However, you may also know from personal experience that banks are not always the answer to your working capital needs.

That’s because banks can be reluctant when it comes to approving small business loans. There are a couple of reasons for this – one that is fairly well known, and one that most people don’t know.

The more well-known reason that banks are hesitant to provide working capital for small business financing is mitigation of  risk. Despite the fact that the Great Recession happened in large part because banks were loaning money to virtually anything with a pulse (actually, a cardboard cut-out or fern probably could have received a line of credit back in 2006), today they’re extremely risk averse – which can be a challenge for small and medium sized businesses.

The less well-known reason is that it costs banks about the same amount of money to underwrite a small business loan for $50,000, as it does to underwrite a large enterprise loan for $3 million. And so banks get more bang for their buck by serving larger clients.

So, now that you know why banks may not be the best answer for obtaining working capital for small business financing, the big question is: where can you turn? The answer is simple: Mulligan Funding!

At Mulligan Funding, we proudly provide millions of dollars a year in working capital for small business financing. We aren’t brokers who shop applications around for the highest bidder. We are the servicer for 100% of our loans, because we believe this is the best way to build a direct, personal relationship with our clients.

What’s more, our working capital loans (or merchant cash advances) are not secured with capital, and our clients don’t need to have great credit or a long credit history. Even a past bankruptcy is not a deal-breaker, provided that it’s discharged at the time of application.

And what happens if our clients need additional small business financing? That’s no problem: they can apply for a second working capital loan even if their first one is still active. Or, on the other hand, if they find that they have some “dead money” sitting in their account because their spending needs have changed, they can repay their loan ahead of schedule to save interest. There are no pre-payment penalties or obstacles of any kind.

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Call Mulligan Funding at 855-326-3564 to discuss your financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.