Working Capital Leads With Applications

There are companies out there selling Working Capital Leads with applications. You may have seen these companies on Fiverr.com or LinkedIn. These companies are almost exclusively located overseas. We won’t mention names here because that’s not our style. However, when we decided to get into this industry in 2013 we promised to help our clients.

How does Synergy help their clients? Firstly we care about explaining what we offer and how it should work with each client. We don’t just sell someone on something like Free Working Capital Leads. Of course these leads sounds great!

MORE THAN JUST WORKING CAPITAL LEADS WITH APPLICATIONS!

BUSINESS LOAN LEADS

AGED BUSINESS LOAN LEADS

BIZ LOAN APPOINTMENTS

BIZ LOAN LIVE TRANSFERS

REQUEST A CALL

PRICING / ORDER NOW!

The reality is that almost all of these Working Capital Leads are going to be a waste of time. Ask yourself a simple question. Ask yourself why someone or a company would sell a complete submission? A submission being 3 or 4 months bank statements and an application. Why would you do that?

Working Capital Leads With Applications

The reason is pretty simple. The reason is there is no value to that lead. A lead is valuable if you can make money. A lead is more valuable if you can make a lot of money. In this industry you make money based on a percentage of the loan amount. If a company is selling Working Capital Leads with apps they must not see any reason to work it themselves. They are also selling this appointment to whomever they want. They’re selling it as many times as they want. Lenders close far more loans with exclusive MCA leads.

Synergy has asked their clients if they have any experience buying working capital leads with applications. They’ve told us the experience has been horrible. We’ve heard cases where 80% of the leads have been defaults. This is the same issue for MCA leads with bank statements. These borrowers were already defaulting on another advance. Now it makes sense why these companies would sell Working Capital Leads like this. They’re trying to make something on a dead lead. Do you want to help someone else make their money back on dead leads?

I THOUGHT NOT!!!

Click HERE To Request A Call Now!

Want more info? Call us at 866-428-0172.

OTHER LEAD PRODUCTS!

REQUEST A CALL NOW!

CHECK US OUT SOCIALLY!

FAQS

1. What are the applications of working capital?

Working capital is essential for the smooth operation of any business. Its applications include:

Day-to-Day Operations:
Working capital is used to fund daily business activities like purchasing inventory, paying employees, and covering other operational expenses. This helps ensure that the business continues running without disruptions.
Managing Cash Flow:
Companies use working capital to manage fluctuations in cash flow. For example, if there is a delay in customer payments or a seasonal drop in sales, working capital can cover the gap until cash inflows are restored.
Inventory Management:
Businesses need working capital to maintain appropriate inventory levels. This allows them to meet customer demand without overstocking (which ties up too much cash) or understocking (which could lead to stockouts and lost sales).
Covering Short-Term Debt:
Working capital ensures that a company can meet its short-term obligations, like paying suppliers and service providers, and repaying short-term loans or credit lines.
Business Expansion & Growth:
While working capital is often seen as a tool for day-to-day operations, it can also support growth strategies by financing the costs associated with new product development, expanding into new markets, or launching marketing campaigns.
Cushion Against Financial Stress:
Companies with sufficient working capital can weather financial storms, like economic downturns or unanticipated market changes. It provides a cushion for periods of reduced sales or sudden increases in operational costs.

2. How can working capital be used as a source of finance?

Working capital can be leveraged as a source of finance in several ways, especially when businesses are in need of short-term funding:

Accounts Receivable Financing (Factoring):
Companies can sell their accounts receivable (money owed by customers) to a third party (called a factor) at a discount. This provides immediate cash flow and essentially turns a part of working capital into a short-term source of finance.
Inventory Financing:
Businesses can use their inventory as collateral to obtain short-term loans. By pledging inventory, they can unlock cash tied up in unsold goods and use that money to fund operational needs.
Trade Credit:
Suppliers may extend credit to companies, allowing them to delay payments for goods or services. This effectively acts as a short-term financing tool, giving businesses more time to pay while using the goods for their operations.
Bank Overdrafts or Short-Term Loans:
Companies with sufficient working capital can access short-term loans or overdrafts from financial institutions. These facilities are often based on a company’s current asset base, allowing them to access funding quickly and on favorable terms.
Revolving Credit Lines:
Some businesses arrange for revolving credit lines with banks. These lines of credit are secured by working capital and allow businesses to withdraw funds when necessary, with flexible repayment options.
Trade Receivables Discounting:
This involves using receivables as collateral to get short-term loans. It’s a form of asset-backed lending where businesses obtain finance by discounting their receivables (usually at a discounted rate) to access cash.

3. What is working capital in banking?

In the context of banking, working capital refers to the liquidity that banks maintain to ensure they can meet their daily obligations and fund their operations efficiently. Banks have to manage their working capital to cover the following:

Liquidity Requirements:
Banks need to ensure that they have enough liquidity to meet withdrawal requests from depositors, as well as meet regulatory requirements (e.g., reserve ratios).
Lending Operations:
Banks use working capital to fund loans to customers (both short-term and long-term). For banks, a part of their working capital is tied up in loans and advances to businesses or individuals.
Regulatory Capital Requirements:
Banks need to maintain a minimum level of capital as part of their operational liquidity. Working capital helps them maintain the proper balance between reserves, loans, and other financial assets to meet the regulations set by central banks or financial authorities.
Operational Expenses:
Working capital also supports the bank’s operational costs, such as employee salaries, branch maintenance, technological infrastructure, and marketing.

In essence, working capital in banking ensures that a bank has enough short-term assets to meet its obligations and continue its business activities without facing liquidity crises.

4. How would you finance working capital through accounts payable?

Accounts payable (AP) refers to the money a company owes to its suppliers for goods and services received on credit. Financing working capital through accounts payable can be done by:

Extended Payment Terms (Supplier Credit):
By negotiating longer payment terms with suppliers, companies can reduce the immediate pressure on their working capital. This means that they can take longer to pay bills, freeing up cash to use for other operational needs in the short term.
Supplier Financing or Reverse Factoring:
This involves a company collaborating with a financial institution to pay its suppliers early in exchange for a discount. By doing so, the company can improve its working capital position, even though it pays the supplier earlier than agreed. Some suppliers may offer early payment discounts, which can provide a source of finance if the company uses its cash flow efficiently.
Trade Credit:
Companies can use trade credit from suppliers to delay payments and finance their working capital. For example, if a supplier provides goods on credit for 30 or 60 days, the company can use that time to sell the goods and generate cash, which can be used to pay off the supplier later.
Accounts Payable Financing (or Supply Chain Financing):
Some companies use specialized financing methods where they extend their AP using a third-party lender. These lenders pay suppliers on behalf of the company and allow the company to extend payment terms. The business can then repay the lender over a more extended period, improving its cash flow.
Optimizing AP Management:
Efficient management of accounts payable by prioritizing payments according to due dates or negotiating discounts can help conserve cash, which can then be used to finance day-to-day operations.