Working Capital, to put it briefly, refers to a business organization's total current assets (short-term ones), marketable securities, accounts receivables, inventory, and cash. Management of the financial segment is a great responsibility that demands equal attention on investments as well as sources of income (both long term and short term). In fact, a business firm can never enhance its value if it fails to survive initial hiccups in the short run. Hence, efficient management of finances is essential for any business to survive.

Strategies to finance short-term working capital needs much greater attention than are usually practiced. Precisely speaking, there are two short-term working capital financing options; business cash advance programs and short-term commercial mortgage loan programs that have been often overlooked. But these two working capital funding options are excellent for small and new business ventures to ward initial financial obstructions off their way. Business cash advance is one of the best financing options for businesses accepting credit cards as mode of payment. Speaking of benefits, business cash advance offers great help even to prospering businesses. For instance, even thriving businesses need working capital that might not be borrowed from a bank. Under these circumstances, business cash advance or merchant cash advance programs come to the rescue. Retail chains, bars, and restaurants, service businesses are highly benefited from these finance programs.

Receivable factoring or "credit card factoring" is another unique working capital management strategy, whereby the businesses sell their future receivables at a discount. However, it is not possible for all small businesses to document their receivables in order to qualify for this financing option. The documented sales volume and credit card sales activity of these small businesses serve as financial asset to attain a business cash advance or a merchant cash advance.

Not negating the importance of short-term working capital loans, it is also necessary to understand the importance of long-term working capital management. While planning to finance your business long-term, make sure to get hold of a long-term commercial mortgage for at least 15-20 years. In a few cases though it becomes essential to avoid long-term commercial mortgage loans and opt for its short-term counterpart. This would especially be applicable for those who intend to sell or refinance their business within one to five years. In fact, availing short-term commercial mortgage loans comes with the added advantage of negating prepayment penalties and "lockout" fees, normally associated with long-term loans.

There are few lenders providing effective services for both these financial strategies. Hence, working capital loan in the form of business cash advance programs or commercial mortgage loans should be chosen with great care.