What is Working Capital

What is Working Capital?

Published On: September 17th, 2017Last Updated: September 17th, 2017Categories: Hard Money

What is Working Capital Florida Georgia Tennessee Hard Money

Working capital, at least as it pertains to the real estate investing business, is money that you can use to fund improvements on an investment property.

Why People Choose Hard Money Loans for Working Capital

Because a hard money lender can provide working capital quickly, many people choose this route when investing in a property in Florida, Tennessee, and Georgia.

How Do You Calculate Working Capital?

Working capital is your current assets minus your current liabilities. For example, if you have $200,000 in assets but $195,000 in current liabilities, you have $5,000 in working capital.

How A Hard Money Loan Can Help You

When you borrow from a hard money lender, you get up to 65 percent of the home’s after-repaired value, or ARV. That means if you’re flipping a home that, when repaired, will be worth $100,000, you can borrow up to $65,000 to work on it.

Do You Need a Hard Money Loan in Atlanta, Nashville, or Florida?

If you’re an investor who needs a hard money loan, we may be able to help you. Check out our loan criteria to find out whether this type of financing is right for you, and be sure to explore our hard money loan FAQs.

You can apply for a hard money loan online or you can contact us at 404-814-1644.