[VIDEO] Working Capital: How It Works & Success Story

By Jack Piazzi| Apr 1, 2022| 1089 Views
3 MIN

You may think it’s a good idea to use personal credit to fund your business growth when there’s an opportunity. While it’s a fast way to get cash, you could be putting yourself at risk by pledging personal assets or using personal credit to fund your company.

Instead, you could use what’s called a working capital loan.

Working capital loans are a way for businesses to get cash fast, allowing them to use that cash to generate a significant ROI. In this article, I explain how working capital works and how you can use it to make a profit like one of my customers.

Get the explanation:

  1. What is Working Capital?
  2. Working Capital in Action
  3. What Sets Beacon Funding Apart from Other Lenders

What is Working Capital?

A working capital loan is an unsecured loan without collateral attached to it. It’s a convenient way to obtain cash quickly so you can use it to scale quickly when you see an opportunity.

The loan is repaid over an agreed-upon period, such as 12 months, 18 months, or 24 months.

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.

This short-term loan is typically used to generate revenue quickly. It’s a way to get cash on hand… very fast.

Disclaimer

Working capital 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 solid product for business owners looking to expand their operation when they know that upfront cash will generate a strong return in a fixed period.

Working Capital in Action

Case Study

During the past two and a half years, I’ve built a partnership with a repeat customer 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 transaction was the first working capital deal I’ve done for him: 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 for three or four days.

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 them for a fast profit… but he didn’t have enough cash on hand to buy the trailers.

So, he gave me a call and I was able to get him the cash within 24 hours with a working capital deal.

The results

A quick buck: My customer got the funds he needed fast, purchased the trailers, transported them to Alaska, and sold them for a quick profit.

He was thrilled about how fast he sold the trailers (as they’re in high demand in Alaska) and said 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 boom! The money is in your account.

What Sets Beacon Funding Apart from Other Lenders

Working with Beacon Funding is special because a lot of other lenders don’t offer the same quality of customer service. I enjoy building relationships with new customers because every business is unique.

Each business owner is different. There are little nuances in their way of doing business, what they want, and their needs. There’s something new to learn every day.

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If you’re interested in learning more about how working capital can benefit your business, sign up for our newsletter. You’ll gain access to exclusive perks, benefits, and content about growing your company.

If you’re interested in using a working capital loan to grow your business, reach out to Beacon Funding directly at (847) 897-2499. Let’s talk about what opportunities you have for scaling your business.

Jack Piazzi

Jack Piazzi

P: 312.224.2587 |  EContact Me

Jack is a Senior Financing Consultant that works with business owners to help them develop their operations using equipment financing options tailored to their unique situation.



06/03/2022