Working capital loan

Working Capital Loan - A loan whose purpose is to finance everyday operations of a company.

working capital loan to finance the purchase of inventory for resale. As the inventory is sold, the loan is gradually paid off. Inventory financing includes floor planning and warehouse financing.

Provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans or makes loans to foreign purchasers of U.S.

A guarantee extended to exporters, designed to encourage lenders to extend them working capital loans to finance various export-related production and marketing activities.

Most warehouse receipts are issued in negotiable form, making them eligible as collateral for Working Capital loans from a bank. See also Asset-Based Lending; Inventory Financing; Uniform Commercial Code.

working capital loan A short-term loan, which allows for the purchase of earning assets.

See also: Banks, Acquisitions, Franchising, Business plan, Mergers