Are you getting opportunities to work with larger clients but unsure how to get the upfront cash to fund the project? Beacon Funding’s working capital loan is designed to help businesses take advantage when profit opportunities arise. Applicants who meet eligibility requirements may qualify for upfront cash up to $250,000.
In this article…
- What is a Working Capital Loan?
- Key Benefits of Working Capital Loans
- How Businesses Can Use a Working Capital Loan
- What’s So Different About Working Capital From Other Loans?
- Why Businesses Use Working Capital Loans
- The Application Process
- Tips for Successfully Managing Working Capital Loans
What is a Working Capital Loan?
A working capital loan is a short-term loan that gives businesses quick cash without needing to pledge personal or business assets as collateral. It’s a convenient way to obtain cash quickly so you can use it to scale fast, allowing you to use that cash to generate a significant return on investment (ROI).
Key Benefits of Working Capital Loans
When the right opportunity is in place, working capital can quickly help your business access the cash it needs to grow.
Here are some key benefits:
- Up to $250,000
- Works across a variety of industries
- Quick approvals, fast funding
- Fast & easy renewal process
A working capital loan is a short-term financing option giving your business a quick cash injection for a significant profit.
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How Businesses Can Use a Working Capital Loan
Here are some common ways our customers use it:
- Launching a new project: Working capital loans can provide the necessary funds to kickstart new ventures without delay.
- Purchasing materials: These loans are ideal for acquiring raw materials or inventory to meet increasing customer demands.
- Cleaning accounts payable: They help businesses settle outstanding debts and maintain good relationships with suppliers.
- Paying sudden costs: Unexpected expenses can be quickly covered, ensuring uninterrupted business operations.
- Expansion initiatives: Businesses can take advantage of opportunities to grow by investing in new locations or services.
- Daily operations: Funds can be used to cover routine operational costs, keeping the business running smoothly.
- Supplies: Maintain a steady stock of essential supplies to avoid disruptions in production or service delivery.
A working capital loan is particularly beneficial for businesses with seasonal or cyclical sales, helping them maintain financial stability during slower peaks.
What’s So Different About Working Capital From Other Loans?
There is a key difference between a standard bank loan and a working capital loan. With a traditional bank loan, it takes time to get approved and receive funds in your hands. With working capital, you can receive funds in your account on the same day you apply.
Why Businesses Use Working Capital Loans
This short-term loan is typically used to get cash on hand to generate revenue quickly. A working capital loan is not for everyone and not for every cash requirement. It’s not a product meant to bolster your savings account or consolidate other debt. It is a product for business owners looking to expand their operation when they know upfront cash will generate a strong return in a fixed period.
The Application Process
Applying for a working capital loan is simple and straightforward. The application process is designed to be easy and takes less than a few minutes to complete. Beacon Funding’s application can be filled out online, which saves time and makes the process even smoother. Digital documentation and electronic verification make submitting the required information hassle-free.
These features of working capital loans help businesses maintain the liquidity they need for day-to-day operations and unexpected expenses. The fast approval and easy application processes ensure that your business can quickly access the funds to keep your operations running smoothly.
Tips for Successfully Using a Working Capital Loan
Case Study
Here’s an example of how one of Beacon Funding’s customers used a working capital loan to their advantage. One of our customers had a business in Alaska. He used working capital to buy and sell used equipment quickly. He was using working capital to gain a profit by flipping trailers.
This is how his deals went: He had just completed a bucket truck deal and was traveling from Alaska to California to pick up a truck. While he was down there, he planned on staying in California less than a week. On the second day, he saw trailers that were priced very low compared to the prices he usually sees in Alaska. So, he thought he could flip the trailers for a fast profit, but he didn’t have enough cash on hand to purchase them.
He called Beacon Funding’s financing experts and within 24 hours, he was approved for the working capital loan and got the cash to buy the trailers.
The Results
Fast and easy profits: The customer sold the trailers for a quick profit. Since the trailers were in high demand in Alaska, he was thrilled about how fast he sold the trailers. He said he would do it again.
Renewal Process
The renewal process is very simple. It’s the standard layout as a renewal for a regular loan, but it’s much quicker (even less than 24 hours). After you call Beacon Funding, you get some paperwork done and then the money is in your account!
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