Working Capital

At Money in Motion, we believe it’s important to support local businesses. Whether you’re in Edmonton, Sudbury or Montreal when Canadian businesses succeed, our whole economy benefits. That’s why we’ve made it our mission to help local businesses gain access to the working capital they need, not only to survive, but to thrive

What is Working Capital?

The simplest way to calculate working capital is to subtract your company’s total liabilities from its total assets.  For example, if your company’s total assets, including equipment and accounts receivables, is worth $400 000, but your total liabilities are $380 000 then your working capital would only be $20 000. While that’s still a tidy sum, it may not be enough cash for you to invest in new equipment, expand your business to a new location or even to cover your daily costs.

Working Capital is a critical component in any business’ ultimate survival and it centers around the difference between your current assets (items easily converted to cash within 12 months) less your current liabilities (things you owe within the next 12 months). What impedes companies is as your business grows you are in many cases forced to allow your client terms to pay you back for the work you have done. These terms are normally 30-60-90 and sometimes on larger jobs can take longer to get paid.

On the reverse of this while you were doing this work you had to pay costs likely much quicker like wages, fuel, materials etc and you have no money to pay it with so you have a shortage in working capital.

You in essence have 3 solutions to this problem if your company does not have its own capital to carry you through:

  • Your banker gives you a line of credit based on your accounts receivable. (these are tough to get and often your business must have been profitable for three years and meet the bank’s criteria)
  • You can pledge the equipment you have bought over time and is paid for and do a sales lease back lease. (this is where we come in) This is very effective and lets you pay back the working capital you got over time.
  • You can discount and sell your a/r to one of our affiliates. This works well since you in essence will receive 98% of your invoice. This works very well when your company does not have paid for equipment to do a SLB lease.

Is It For You?

This question is totally dependent on your company’s particular circumstances. Our experienced people are happy to discuss the options with you.

Why You Need Working Capital

Having enough working capital at your disposal can have some major benefits <link to blog post about benefits of working capital> for your business:

  • You can keep things running—Sometimes the cheques roll in, and sometimes they trickle. It’s part of doing business. But you need to be able to keep the lights on and pay your employees while you’re waiting to get paid. Our financing options can make sure everything continues to run smoothly even when there’s a backlog in your receivables.
  • You won’t miss out on opportunities for growth—When opportunity comes a knockin’ you need to have enough resources at your disposal to open the door. Working capital gives you the freedom to pursue lucrative opportunities that promise big returns.
  • You can weather the storm—It pays to expect the unexpected. Equipment breaks down. And when big expensive machinery breaks down it usually takes a big expensive repair bill to get it up and running again. Don’t let unplanned expenses cripple your business, increase your working capital with Money in Motion instead.

How do I get working capital?  

If you need working capital to cover the cost of your daily expenses, equipment leasing, hire new employees or expand then there are basically three things you can do:


  1. Try to get a line of credit based on your accounts receivables from the bank. This is the most difficult route to take as banks tend to have a very demanding list of criteria that must be met before they’ll agree to extend credit.
  2. Opt for a sales-lease-back with Money in Motion. You sell your equipment to us and we lease it back to you over an agreed upon period, freeing up cash for other uses.
  3. Sell your accounts receivables to one of our affiliates. You receive 98% of your invoice which’ll give you access to the funds you need to move your business forward.


Working capital can help you stay ahead of your expenses, give you the funds for equipment leasing or even take advantage of sales and special offers. When you need cash to build your business, Money in Motion can help. Contact us today to learn more!