Get Immediate Access to Cash Flow for Your Business
You probably are overwhelmed with news stories regarding the Coronavirus pandemic. It is causing tremendous hardship across the U.S. and the world. While a great deal of uncertainty remains, there are steps you can take to shore up your company’s working capital.
Small Business Administration Loan
A Small Business Administration loan is partially guaranteed by the government, so it is easier to get approved for this type of funding than for a bank loan. As an added bonus, they offer interest rates that can be much lower. You can also get them for smaller sums, making the repayments more bearable. If you have a credit score that is lower than 560, however, you will automatically be denied.
While the SBA provides an excellent option for many business owners, it is currently inundated with requests for loans. In California they received up to 700,000 requests in one day alone. One SBA official said that the phone calls and emails are literally non-stop. While the SBA loan may be an excellent option for your business, you may not have the 3-4 weeks to wait to have your application reviewed and potentially denied.
Invoice Factoring: A Quick and Easy Way to Get Funded
If your business invoices its customers, invoice factoring can help you avoid the snowball effect of late payments and bad debt. Factoring or accounts receivable financing are a form of invoice factoring that provide regular cash injections throughout the month.
If you decide to use invoice factoring, you also hand over control of your accounts receivable to the factoring company. This may be highly beneficial if you’re struggling to collect debts efficiently, or don’t have the time and resources to maintain effective credit control procedures.
Here are some articles that are trending on our website because of the COVID-19 outbreak. We hope you find these helpful as well.
Small businesses tend to operate right on the edge, which means that most of them will need some financing assistance sooner or later. Unfortunately, getting a bank loan is not possible for a lot of growing businesses. More than half of all business loan applicants are denied, and most of those approved are well-established. Fortunately, there are number of other financing options that your business can turn to when the banks turn you down.
Crises are realities that businesses either come face to face with or flirt with over their life cycle. These are conditions that present serious challenges to the business owner and its staff. How you respond to crises is going to define how your company grows and succeeds in the long term. Here are some strategies you can consider to help your business handle a crisis period.
Large banking institutions remain reluctant to lend to small growing businesses, and those that do commonly have long application procedures as well as unfavorable terms that create financial pressure from the start. If you’ve been turned down for financing by a bank, you may be worried about how you’re going to fund your business’ growth, but there are alternatives that could better suit your company.
The Bottom Line
While these are truly unprecedented times, there are many options available to maintain healthy cash flow. As always, the Universal Funding team remains laser-focused on your company’s success. We maintain our commitment to providing fast and efficient funding ensuring that businesses have the cash flow needed to continue their operations.
About Universal Funding
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days. Call us today for more information at 800.405.6035.