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Financing Products & Services Working Capital

How Does Working Capital Work?

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By Andy E on January, 10 2022
Working Capital Loans work for you
What can you do with a Working Capital Loan for your business?

The simple answer: literally anything!

Are you looking to grow your business?

Do you ever have unexpected costs arise?

Does your business ever need to place large orders or make expensive purchases?

Are you ever stuck waiting on large payments to come through?

Are you looking to expand cash flow?

If you answered "yes" to any of these questions, you'll need working capital (cash)...but how do you get it?

What is working capital?

Working capital is the cash a business has on hand at any given time. It's used for general day-to-day operational costs like rent, utilities, marketing, payroll, supplies, etc.

Day-to-day operation and more importantly, growth, are difficult when a business is short on working capital. There are a few different options for increasing capital via financing: SBA or bank loans, lines of credit, or the method we're going to focus on today: the Working Capital Loan.

What are Working Capital Loans? (And how do they work?)

When you take out a Working Capital Loan, funds are deposited (as cash) directly into your bank account. Once there, the money is yours to use however you see fit - the funds are completely unrestricted. We recommend you use it for business expenses, but it's truly up to you! You could take a trip to go run with the bulls or swim with sharks if that floats your boat, we won't judge. (On second thought, scratch that - we want you to survive long enough to pay us back. 😅)

Speaking of payments...within a month or so of receiving the funds, you'll begin making payments back to your lender. (Fun Fact: we have monthly, weekly, or even daily payment options available - you choose whichever best fits your budget!)

What's the difference: Line of Credit vs. Working Capital Loan
 

With a line of credit, you withdraw the funds as needed, and make a payment (with interest) each month. You can take smaller chunks of money out at different times, and you'll be charged interest on whatever you withdraw. Interest rates on a line of credit are usually variable, meaning they'll change with the federal funds rate. This makes it difficult (if not impossible) to predict what the money you borrow will actually end up costing you.

In contrast, with a Working Capital Loan, the full amount of funds is deposited directly into your account, and you'll pay back a set amount each month. The interest rate is fixed, meaning it won't rise over the course of your term (also making this type of loan easy to budget for!).

Why choose a Working Capital Loan over an SBA or Bank Loan?

Speed, ease, and savings!

SBA Loan or Bank Loan

  • Typically require 2-3 years of bank statements
  • Require collateral
  • Hidden Fees
  • Slow approval process
  • It usually takes several months to receive funds

Working Capital Loan

We can't speak for other finance companies who offer similar products, but here's what you can expect when working with Geneva Capital on your Working Capital Loan:
  • Only your prior 3 months of bank statements are required
  • Don't require collateral
  • Same-day approvals
  • Same-day direct deposit
  • Pre-payment discounts (no penalties!)
  • Short-term loan designed to save on interest costs
 
Why Geneva Capital?
 

// We're quick & easy. //

We pride ourselves on how easy the process is for our customers. We can have an approval for you in just a few hours, and have the funds in your account the following morning. It really is that simple! Plus, if you're already a Geneva Capital customer, we don't even need you to fill out an application. We just need recent bank statements for the business and permission to refresh credit.

// We care. //

We've been helping small businesses get the equipment they need to grow for over 20 years. During that time, we've realized that our customers don't just need new equipment to grow...they might need to finance a small remodel, increase marketing efforts, or buy supplies, etc. An equipment lease obviously wouldn't work on these types of expenses, so we began offering our Working Capital Loan to help bridge the gap to growth and address the need we were seeing.

Our goal is simple: help your business grow and succeed...however we can.

Want to learn more?

Check out our Working Capital page for more information, or contact us for a no-cost, no obligation quote today!

Andy Erickson
Working Capital Manager
(320) 759-3523
andye@gogc.com

We also encourage you to browse our Google Reviews to see what other customers have said about our Working Capital program. Will you be the next great experience?

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