A company’s working capital must be properly managed to avoid affecting its ability to pay short-term debts and to prevent insolvency.

But what do you do when you don’t have enough liquidity to cover these payments promptly? One of the most advantageous options available is non-banking business loans, designed specifically to cover such obligations.

Learn more about working capital and how you can obtain a quick loan to ensure your business has the necessary cash flow at any time!

Contents

What is Working Capital?

Why You Need a Non-Banking Working Capital Loan

Possible Uses for a Working Capital Loan

Steps to Obtain a Working Capital Loan

What is Working Capital?

Working capital represents the difference between a company’s current assets and its current liabilities. In practice, this capital ensures:

  • Payment for inventory purchases
  • Coverage of production costs
  • Payments to suppliers and employee salaries

The term comes from the English “working capital” and is also referred to as net working capital.

The value of working capital indicates a company’s ability to meet its short-term obligations. The success and long-term growth of your business depend on daily operational efficiency, so it’s crucial to maintain working capital at a level aligned with your business needs.

Why You Need a Non-Banking Working Capital Loan

Non-banking institutions like Mikro Kapital, a member of the European Microfinance Network NGO, support microcredit as a tool for economic growth and social cohesion. Entrepreneurs seeking to grow their business can benefit from non-banking loans to maintain working capital within acceptable limits.

Advantages of a Non-Banking Working Capital Loan:

  • Ensures all obligations are paid on time, maintaining credibility and professionalism
  • Prevents missed business opportunities due to lack of liquidity
  • Optimizes cash flow, allowing fast financial decisions with long-term benefits
  • Avoids negative impressions of financial instability among collaborators
  • Provides temporary or permanent financing solutions essential for optimal business development

Possible Uses for a Working Capital Loan

A working capital loan can cover multiple business needs, including:

  • Purchasing inventory
  • Paying suppliers
  • Paying employee salaries or taxes
  • Refinancing other working capital loans from different institutions
  • Loan Amounts and Terms

Depending on your business needs, non-banking loans for working capital can be:

  • 2,000 – 45,000 lei: Max repayment term 48 months, with personal guarantee
  • 45,001 – 135,000 lei: Max repayment term 60 months, with personal and movable asset guarantee
  • 135,001 – 700,000 lei: Flexible repayment schedule up to 60 months, with personal and immovable asset guarantees

Steps to Obtain a Working Capital Loan

Choose the Right Loan Provider

Research non-banking institutions carefully, as conditions and approval criteria differ. Mikro Kapital has proven results in positively impacting the SME market.

Select the Best Working Capital Loan

Choose the loan amount suitable for your business, with a repayment term that works for you.

Look for loans offering a grace period

Check for zero down payment, a benefit not available from all lenders

Submit Your Loan Application

  • Fill out a short online form or apply by phone
  • Provide a minimal set of required documents
  • Loan consultants will guide you through approval and conditions

Set Up a Flexible Repayment Schedule

Consult with representatives to create a schedule adapted to your business seasonality, ensuring timely payments without cash flow issues.