If you’re like most of our top-performing clients—down-to-earth entrepreneurs and savvy business owners from all parts of the United States—you know the importance of making every dollar count.
One overlooked opportunity for huge savings comes from working capital loans that offer prepayment discounts. For instance, imagine you're approved for a $200,000 bridge loan at a 1.21 payback factor, meaning you'd typically repay $242,000. But here's where it gets interesting: a prepayment discount can cut your repayment by up to 70% if repaid early, dramatically reducing your costs.
So, In what situations should you take advantage of these prepayment discounts?
Bulk Inventory Deals: When your supplier offers unbeatable discounts on bulk inventory purchases, use short-term financing to seize the opportunity. Then, once inventory sells, repay early to significantly lower your financing cost.
Seasonal Cash Flow Gaps: Smooth out your seasonal cash flow fluctuations. Take financing during slow periods, repay as soon as your busy season kicks in, and keep your expenses lean with early repayment savings.
Rapid Equipment Purchases: Quickly secure crucial equipment upgrades or replacements, boost your productivity, and repay early from increased revenues. Prepayment discounts turn necessary expenses into strategic savings.
Emergency Expenses: Life happens—equipment breaks, opportunities appear unexpectedly, or payroll comes sooner than planned. Tap into bridge financing for immediate relief, then repay quickly once your revenue stabilizes, significantly reducing costs.
Supplier Payment Discounts: When your suppliers offer discounts for early payments, bridge financing allows you to pay upfront, securing savings from suppliers, and then repay early to further maximize your total savings.
Short-Term Expansion: Capture growth opportunities, expand your team or workspace, and quickly repay the loan from increased income streams. Prepayment discounts reward your entrepreneurial instincts by cutting overall financing costs.
At Capital Infusion, we get it—financing should be a tool for growth, not a burden. That’s why our revenue-based financing model rewards responsible financial management with substantial prepayment discounts. Our online, automated application focuses on your business’s performance data—not just your credit score—to provide fast, flexible access to the capital you need. No paperwork nightmares, hidden fees, or lengthy waits. We're here to build relationships and fuel your business growth, and the prepayment discount is just one way we’re putting money back in your pocket.
Ready to take advantage of strategic savings and keep more money in your business?
Apply Now and see how much you can save.
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