Working Capital Loans

These loans help businesses meet their day-to-day operational expenses, such as fuel costs, employee salaries, maintenance, and repairs.

Let's consider an example

of how a working capital loan from Cargo Financing could benefit a transport and logistics business:

Imagine a logistics company that experiences fluctuations in cash flow due to delayed customer payments and the need to cover various operational expenses. They may have outstanding invoices from clients, but the delay in receiving payments hampers their ability to meet immediate financial obligations. In this scenario, a working capital loan from Cargo Financing can provide the necessary funds to bridge the gap and ensure smooth operations.

Let's say the logistics company requires $50,000 to cover payroll, fuel expenses, maintenance costs, and other day-to-day operational needs. They approach Cargo Financing for a working capital loan. After evaluating the company's financial health, creditworthiness, and cash flow history, Cargo Financing assist in finding the right lender.

The working capital loan agreement outlines the terms, including the loan amount, interest rate, repayment period, and any associated fees. In this example, let's assume the loan is approved with an interest rate of 10% per annum and a repayment period of six months.

Upon loan approval, Cargo Financing disburses the $50,000 to the logistics company's business account. The funds can be used to cover immediate expenses and ensure smooth operations without relying solely on pending customer payments.

Over the next six months, the logistics company gradually repays the loan, including interest, in equal monthly installments. The repayment amount, including the principal and interest, would depend on the specific terms agreed upon.

By utilizing the working capital loan from Cargo Financing, the logistics company can effectively manage their cash flow, meet operational expenses, pay employees on time, and maintain their fleet. This enables them to continue providing their services without disruptions and take advantage of growth opportunities within the industry.

It's important to note that the terms, interest rates, and repayment schedules for working capital loans can vary depending on various factors, including the borrower's creditworthiness, business performance, and the specific lending policies of Cargo Financing or any other financial institution.