No matter the size of your business, a certain amount of cash flow is vital for basic operation. When you’re having difficulty generating cash on your own and want to avoid taking out a loan, it’s likely time to start exploring viable financing options. Financial assistance from Universal Funding can help give your business the push it needs to start receiving a steady stream of incoming cash. To avoid taking out a loan we recommend accounts receivable financing and cutting non-essential spending.
Loans are Not the Only Option
Even though you may qualify for a considerable business loan, approval may take a lot more time than you have. You always have the option to go to a bank, but you can also talk with capital funding companies about their options. Loans require repayment and may have stiff penalties and high interest rates for those with bad credit, so it’s best to explore all of your cash flow options before locking into an agreement. Plus you can always keep bank lines of credit on the back burner for future uses.
Look Into Accounts Receivable Financing
Also known as factoring, accounts receivable financing is the selling of invoices to a factoring company, who pays you up front for the invoice and collects the money owed from your customer according to the terms you’ve arranged with them. Your customers are taken care of and you get to go about business as usual. The best parts are that Universal Funding looks at more than just your credit and there is no money to repay since you are selling an asset and not taking out a loan. Finding a company that is willing to purchase your invoices can also be a good sign for the future financial state of your business.
Cut Non-Essential Spending
When cash isn’t flowing, you need to follow a strict budget. It might surprise you how much you spend on non-essential items for your business. When you cut these costs out, you could end up with more cash than you realized you had. Capital funding companies may be able to provide you with a financial analysis to help you see where your money is going and how to get your spending back on track.
Get Down to Business
When you’re not generating the cash you need, it’s time to get down to bare-bones business and become money smart. You can learn more about accounts receivable financing from Universal Funding and getting your company’s cash flowing once more by filling out our convenient online rate form.