Working Capital Loans

exportimportbank

A working capital loan is money borrowed from a bank to pay for the day-to-day business of producing and selling goods and services. Suppose a customer abroad wants to purchase goods or services from your business, but you need more cash to pay for materials, equipment, your staff, and other factors that go into making and exporting your products. To finance your exports, you can ask your bank for a working capital loan, which will give you the money (working capital) you need to fulfill your export orders. Your bank may issue a working capital loan that is specific to a particular order exported to a particular buyer. Or the bank may offer you a revolving line of credit – an amount that you can continually use, repay and use again over a certain length of time (like a credit card).

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