Working Capital Financing | Mizrahi Tefahot Bank LTD

Working Capital Financing

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Comprehensive short-term business financing for your ongoing, seasonal, or day-to-day cash flow demands

For middle-market and corporate manufacturing, trade, and production businesses operating in most industries and US markets, our flexible commercial lines of credit can deliver the funds you need to meet your working capital requirements while leveraging your local assets. Draw only the cash you need, lowering your financial costs.

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Our Working Capital Lines of Credit can be used to:

  • Drive growth and expansion plans
  • Optimize ease of use, financial costs and utilization efficiency
  • Manage cyclical cash fluctuations
  • Meet short-term borrowing demands
  • Cover operating expenses during periods of expansion
  • Provide immediate or backup funding when needed

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What is a Working Capital Line of Credit?

Working Capital Revolving Lines of Credit (RLOC) provide ongoing funding to cover short-term cash needs and bridge the financial gap between the timely payment to your suppliers and other account payables and payment collection from your customers. Commercial lines of credit are commonly used in most businesses, including manufacturing, production, distribution, retail, and service industries, to help manage cash flow fluctuations. Use your line of credit to offset costs of large purchases, prepare for your busy season, or cover payroll and expenses during occasional downtimes.

Can working capital facilities be used for day-to-day expenses?

Yes, working capital loans like revolving lines of credit can be used for daily operating costs—but only to manage your usual cycles of income and expenses or during times of planned expansion. Because commercial lines of credit typically have shorter term lengths, you shouldn’t depend on them to cover longer-term expenses such as CAPEX, investments in properties, and machinery.

How do I calculate my working capital needs?

Working capital is all about having the funds available to fulfill your short-term obligations—from suppliers and payroll to inventory. Lenders calculate your current working capital by subtracting your short-term liabilities from your current assets (e.g. cash, inventory, and accounts receivable). Most businesses experience a regular ebb and flow of income, assets and liabilities, so it is crucial to understand your own working capital patterns and needs to ensure that you never run out of cash. Reach out to our team to better understand your working capital requirements and learn more about lines of credit solutions we offer.