For Collierville, TN practices, firms and restaurants, it is a short loan with fixed payments, arranged through funding partners who review each request.
A short loan for operating costs that are due before fees, claims or client payments arrive. The examples show payroll, a tax payment, a catering job, weekly versus monthly payments and two offers compared. Partners set any terms.
At a glance
- Pays for
Payroll, supplier invoices, repairs, tax payments
- Example terms on this page
4 to 12 months, all invented
- Decided by
The funding partner that reviews the request
What can I use working capital for? A Collierville, TN therapy office’s list, from payroll to a table repair
Working capital covers the running costs of a practice, not long-lived purchases. For a physical therapy or chiropractic office, the list can include:
- Payroll for therapists and front-desk staff while billed visits are still being paid
- Treatment supplies, linens and printed forms
- Fixing a broken treatment table or a rehab treadmill
- Annual scheduling and billing software subscriptions
- Rent while a billing backlog clears
In ZIP Code Business Patterns, 29 offices of other health practitioners, the NAICS 6213 group that takes in chiropractors and physical therapists, had a ZIP 38017 address in 2023.
Illustration only, invented figures: a therapy office borrows $12,600 to carry payroll and a table repair through a billing backlog, repaid over 9 months at a 14.6% annual rate. The invented payment is $1,486.54, and the nine invented payments total $13,378.86.
Costs that return every pay period: a working capital loan sized to a Shelby County, TN accounting firm’s payroll
Payroll is the cost that returns on a fixed calendar whether fees have arrived or not. An accounting or bookkeeping office can size a working capital request to the number of paydays inside the wait, rather than to a round figure.
Illustration only, invented figures: an accounting firm with an $11,250 biweekly payroll expects a large engagement fee in 35 days. Counting back from the invented fee date, those 35 days hold 2 or 3 paydays, so the invented amount to cover is $22,500 or $33,750.
Illustration only, invented figures: the firm requests $22,500, the two-payday figure, at a 13.65% annual rate over 6 months; the invented payment is $3,900.70 and the invented total $23,404.20. If a third payday falls inside the wait, this invented plan leaves one payroll to cover from cash on hand.
ZIP Code Business Patterns listed 25 accounting, tax preparation, bookkeeping and payroll services establishments with a ZIP 38017 address in 2023 (NAICS 5412).
Naming the working capital loan purpose: an estimated tax payment at a Shelby County, TN dental office
A funding request that names its purpose tells a partner more. "Working capital" alone says little; "an estimated tax payment due on a fixed date, repaid from the next twelve months of patient revenue" tells a partner what the loan is for and how it gets paid back.
Illustration only, invented figures: a Shelby County, TN dental office needs $15,800 for an estimated tax payment and spreads it over 12 months at a 12.85% annual rate. The invented payment is $1,410.10, and the twelve invented payments come to $16,921.20, of which $1,121.20 is interest.
How a loan for a tax payment is treated on the return is a question for the practice’s tax preparer, not for a funding partner. For the record, ZIP Code Business Patterns placed 24 offices of dentists inside ZIP 38017 in 2023 (NAICS 6212).
Working capital used for a catering contract: food and staff costs at a Collierville, TN restaurant before the client pays
A catering contract is a clean example of working capital: the restaurant pays for food and staff before the event and collects from the client afterward. The loan bridges those weeks and ends when the invoice is paid.
Illustration only, invented figures: a sit-down restaurant books a corporate catering job that needs $6,300 of food and $4,450 of added staff hours, $10,750 in all, with the client paying 30 days after the event. Spread across 4 invented months at a 14.1% annual rate, the job’s costs become $2,766.91 a month, $11,067.64 once the last invented payment clears.
In ZIP Code Business Patterns, 40 full-service restaurants had a ZIP 38017 address in 2023 (NAICS 722511).
Weekly or monthly payments on the same working capital loan for a Shelby County, TN supplier invoice
Some working capital offers collect weekly instead of monthly. The same amount at the same annual rate costs a little less interest on a weekly schedule, because principal is paid down sooner, but a payment leaves the account every week.
| Schedule | Payments | Each payment | Total paid | Interest |
|---|---|---|---|---|
| Weekly (rate / 52) | 26 | $797.40 | $20,732.40 | $732.40 |
| Monthly (rate / 12) | 6 | $3,470.26 | $20,821.56 | $821.56 |
In this invented comparison the weekly schedule costs $89.16 less interest over about six months. A firm whose fees arrive once a month may still prefer the monthly invented schedule, so it is not short of cash in the weeks between.
Two working capital offers side by side: payroll while invoices are out at a Shelby County, TN firm
Funding partners price working capital differently, and the lower rate is not always the cheaper offer. The term moves the interest too.
| Offer | Annual rate | Months | Monthly payment | Total paid | Interest |
|---|---|---|---|---|---|
| A | 12.4% | 12 | $2,225.90 | $26,710.80 | $1,710.80 |
| B | 15.2% | 9 | $2,956.66 | $26,609.94 | $1,609.94 |
In this invented pair, offer A has the lower rate but costs $100.86 more interest, because it runs three months longer. Offer B asks for $730.76 more each month. Fees listed in either offer belong in the comparison too.
Four blog articles reach working capital from other sides: a hotel waiting on corporate accounts, a landscaping crew between contract invoices, what a practice loan agreement asks of the owners and interest-only months at the start of a loan.
By Baydale Funding Group · Updated
