In this installment of Ask a Small Business Financing Expert, Gibraltar Business Capital VP Dan McCallum answers a question he and his team receive most often: What is working capital finance?

The phrase working capital is a hot topic among business owners, but in the world of specialty finance, it’s an essential building block to getting businesses where they need to go in a timely matter.

Working capital finance is the main way companies manage their cash flow cycle, which is the period of time between buying inventory and paying for other operating expenses to collecting accounts receivable.  The cycle can take as little as a couple of months or longer than 6 months depending on the industry, and companies need access to cash that is otherwise tied up in inventory and accounts receivable.

Gibraltar Business Capital helps businesses finance working capital needs by providing advances against company assets to create lines of credit for bridging cash flow gaps. Whether it’s advancing business via asset-based lending or invoice financing solutions, Gibraltar’s financing vehicles provide quick liquidity that can be used for anything a small business needs it for, from weathering a seasonal slump to seizing a growth opportunity.

“Capital is the lifeblood of every business,” said McCallum. “Each company’s circumstance is unique, so we listen carefully, think outside of the box and tailor our solutions to fit the company’s needs.”

McCallum cited Horizon Mud as a recent example: “Gibraltar helped Horizon Mud wade through oil industry challenges with a $6 million asset-based loan that included an advance against unbilled accounts receivable to accommodate for the delayed nature of invoicing customers that is commonplace in the industry.”

Have questions about working capital? Follow the blog for Ask a Small Business Financing Expert updates or follow Gibraltar on Twitter via @GibraltarBC or using #WorkingCapitalExpert. Click here to submit a question to the team.