A Guide to Different Types of Working Capital

A Guide to Different Types of Working Capital

Every business needs capital to operate, and working capital is a key component of that. It is the money used by businesses to pay for their day-to-day operations, such as purchasing inventory, paying employees, and meeting short-term obligations. Working capital can come from a variety of sources including debt financing or equity investments.


First, let’s look at the two different types of assets that make up a company’s working capital- current assets and noncurrent assets. Current assets are those that can be converted into cash quickly such as accounts receivable, inventories, short-term investments, and cash itself. On the other hand, noncurrent assets are those that cannot be converted into cash quickly and include things like land, buildings, long-term investments, and equipment. When determining the amount of working capital needed for a business, it is important to consider both short-term and long-term needs to ensure effective operations.

Operating Cycle

Another factor to consider when managing working capital is the operating cycle. This is the amount of time it takes a company to purchase materials, produce goods and services, sell them to customers, collect payments from customers, and use those payments to buy new materials. Businesses need to have sufficient working capital on hand to cover the costs associated with their operating cycle so they don’t run out of cash. One way to ensure this is by maintaining a proper ratio between current assets and liabilities.

Trade Credit

Finally, businesses can use trade credit as another source of working capital. Trade credit allows vendors to extend payment terms to customers, which can be beneficial for both parties. This kind of arrangement enables businesses to have access to additional funds without having to take out a loan or incur additional debt. However, it can also be risky since vendors may require personal guarantees and collateral before extending a credit line.

Overall, there are many types of working capital available to businesses to help them meet their short-term and long-term needs. Companies need to understand the different sources of working capital and how each one can be used effectively to ensure their operations run smoothly. By properly managing their working capital, businesses can ensure they have sufficient funds on hand for day-to-day operations without having to take out expensive loans or incur additional debt.

Lending Hub offers a wide range of working capital solutions for businesses of every type and size. Contact our team today to get the financing you need.

Improving FICO Scores for Your Business

Improving FICO Scores for Your Business

A good FICO Score is an important part of running a successful business. It can help you secure financing, get better terms from vendors, and even make it easier to hire top talent. But improving your FICO Score isn’t always easy. 

Keep an Eye on Bills and Financial Obligations

One of the most important things businesses can do to improve their FICO Score is to make sure they pay all bills on time. This includes credit cards, loans, and other forms of debt. Late payments can seriously affect your score so it’s important to stay on top of them. Additionally, business owners should be careful about taking on too much debt. Having too much debt can be a red flag for lenders and will likely hurt your FICO Score.

Monitor Credit Utilization

Another strategy businesses can use to improve their FICO Score is to keep their credit utilization low. Credit utilization is the amount of available credit you’re using relative to the total amount of credit available to you. It’s important to keep this number as low as possible, ideally 30% or lower. This will show lenders that you’re managing your credit responsibly and can help improve your FICO Score.

Monitor Personal Credit Scores

Finally, businesses should be aware of their credit scores as well. If a business owner has a poor personal credit score it can potentially hurt the business’s FICO Score. This is especially true for businesses that rely heavily on personal credit, such as startups and small businesses. Business owners should make sure they understand their credit score and work to improve it if necessary.

By keeping these strategies in mind, businesses can dramatically improve their FICO Scores and ensure long-term success. Paying bills on time, managing debt wisely, keeping credit utilization low, and understanding personal credit are all essential steps to improving your FICO Score. With a little bit of effort, businesses can get their FICO Scores in order and enjoy the benefits that come with it.

Understanding Hard Money Loans

Understanding Hard Money Loans

Hard money loans are an alternative financing option for people looking to purchase or refinance real estate. They offer a fast and straightforward way to obtain funding without the hassle of dealing with traditional lenders. But before taking out a hard money loan, it is important to understand how they work and what their benefits and drawbacks are.

What is a Hard Money Loan?

Hard money loans are short-term, high-interest loans made by private lenders — typically individuals or small companies. They’re often used to fund real estate transactions because they usually require less paperwork and no credit score requirements. The primary benefit of a hard money loan is that it provides fast access to capital without the long wait times associated with traditional lenders.

Applying For a Hard Money Loan

When applying for a hard money loan, applicants typically provide the lender with financial documents such as tax returns and bank statements, along with proof of income and/or assets. Generally, these documents are reviewed quickly, and the lender will decide whether to approve or deny the loan within a few days — something that would normally take weeks or months with a traditional lender.


Hard money loans also have some aspects that must be considered before taking one out. Most notably, they come with terms that differ from traditional loans. In addition, hard money lenders may require borrowers to provide collateral as security for the loan, such as real estate or other assets. Finally, hard money loans are typically short-term and must be paid back within the time allotted.

Overall, hard money loans can be a great way to obtain fast financing for real estate transactions — if applicants understand the risks and fees associated with such loans. Lending Hub offers hard money loans with generous terms and fast closings, so you can get the financing you need. Contact our team today to learn more.

How to Renovate a Rental Property

How to Renovate a Rental Property

Rental properties can be a great source of passive income, but if you want to maximize your returns it’s important to keep them in good condition. To do this, many landlords choose to renovate their rental properties from time to time. However, renovating a rental property is no small task and requires careful planning and execution.

Make a Plan

The first step is to figure out what it is you want to achieve with the renovation. Are you looking to make cosmetic improvements, or are you going for a more comprehensive overhaul? Once you have an idea of what needs doing, it’s then time to create a budget and timeline for the project. Consider how much money you can allocate to the project, as well as how long it should take.

Source Materials and Contractors

Next, you’ll want to start shopping around for materials and contractors who can help bring your vision to life. Depending on the scope of the work, you may need specialized tradespeople or architects for some parts of the renovation. Make sure to do your research and get quotes from a few different sources.

Managing Renovations

Once you have your materials and contractors in place, you’ll need to determine how you want to manage the project. Consider whether it would be more cost-effective for you to hire a general contractor who can oversee the entire job, or if it makes more sense to act as your own project manager.

Protect Your Property

Finally, you’ll need to think about how you can protect your property during the renovation process. It’s important to keep any dust and debris contained, as well as ensure that any workers have proper safety equipment so they can complete the job safely. When the project is completed, be sure to inspect it thoroughly before allowing tenants back in to make sure everything is up to code.

Renovating a rental property can be a great way to increase your returns and ensure that the property remains desirable for future tenants. While it’s no small task, with careful planning and preparation you can ensure that the project goes as smoothly as possible. Lending Hub offers financing to help property investors renovate their rentals. Contact our team today to get the funding you need.

How to Achieve Business Growth

How to Achieve Business Growth

Business growth is one of the most important goals for any company. It’s a sign that the business is progressing and developing, and it can lead to more profits and greater success. But achieving business growth isn’t always easy; there are many factors that need to be taken into account and strategies that need to be implemented in order to achieve sustainable, long-term growth. In this blog post, we will discuss some of the key steps you can take in order to reach your desired level of business growth.

1. Develop a Clear Mission and Vision For Your Business

Establishing a clear mission and vision statement will help to ensure that all of your employees understand the direction in which you want the company to go, and it can also create motivation throughout the organization. Make sure that everyone on board is aware of your objectives, so they can contribute to the company’s progress.

2. Focus on Customer Satisfaction

Focusing on customer satisfaction is one of the best ways to ensure long-term business growth because returning customers are the lifeblood of any successful organization. Make sure that you identify what your customers need and provide them with a high-quality product or service in order to ensure their loyalty.

3. Innovate

Being open to new ideas and concepts is essential for keeping up with the competition, so it’s important that you develop a culture of innovation within your business. Encourage employees to come up with creative solutions and utilize the latest technology in order to stay ahead of the curve.

4. Establish Measurable Goals

Setting measurable goals and objectives is essential for analyzing your progress and ensuring that you stay on track toward achieving your desired level of growth. Break down the bigger objective into smaller, more achievable goals, so that you can easily monitor how far along you are in the process.

5. Invest in Marketing

Many companies fail to realize the importance of investing in marketing, but it’s one of the most important steps you can take in order to ensure business growth. Investing in targeted campaigns and utilizing different channels can help you reach a wide range of potential customers and increase your chances of success.

These are just some of the key steps that you can take in order to achieve business growth. With a clear mission, focus on customer satisfaction, innovation, and measurable goals, as well as an effective marketing strategy, you should be able to reach your desired level of success. Contact Lending Hub to get growth financing solutions tailored to your business.