Businesses require working capital to conduct a variety of daily operations, including the payment of wages, purchase of materials, and providing of credit services. Not only do these funds support day-to-day operations, but they also offer a steady financial base for companies. There are several different financial sources that businesses can use to secure working capital. Which source a company should turn to depends on the particulars of its financial situation. A loan is essentially an amount of money that is given to a company, with the expectation that it will be paid back within a period that exceeds one year. In order to secure long-term loans, which are able to provide working capital, businesses will need to contact commercial banks or government institutions. Loans of this kind are usually secured against certain assets. Short-term loans are also able to provide capital to businesses. These loans must be repaid within a year of when the money was borrowed, and they can usually be acquired from saving banks, cooperatives, or government institutions. The Small Business Administration is one organization that is especially designed to help businesses obtain small loans. Their programs are capable of assisting companies that are having a difficult time obtaining credit. Businesses that do have good credit can apply for short-term loans directly from the bank without going through the SBA. Instead of using loans, a business can acquire capital by using a line of credit, which is a loan agreement between a bank and a borrower. The bank allows the borrower to secure funds without requiring the loan to be taken. A business can only use this option if it has recurring expenses at regular intervals. Asset-based financing is another option available to businesses. They can use their assets to secure capital from institutions that offer asset-based loans. Anything from machinery to vehicles can be treated as assets. Businesses can even secure loans using accounts receivable, which can be traded in for capital at discounting companies. Businesses that operate in certain industries may be able to use government subsidies. For example, the government is highly interested in promoting business exports because exporting directly impacts the economy. Therefore, industries that work with exports will have access to exclusive sources of capital. Loans, lines of credit, and asset-based funding are just a few of the ways that businesses can secure working capital. Maintaining a steady financial base should be one of the primary goals of every company. By contacting a bank or government institution, businesses can secure the funds needed to conduct daily operations and maintain their financial stability.