It is a truism that in order to continue to grow, businesses of all sizes and stages of growth need access to financing. However, sometimes difficulties arrive that impede your company cash flow and hinder your access to small business loans. These problems may include financial confusion resulting from mixing personal and business finances, lulls in income while you’re waiting for clients to pay you, or draining of resources as you grow your startup. Here are some methods that you can use to obtain business funding even if your cash flow isn’t what you would like it to be.
Obtain a Business Credit Card
While the funding available from a business credit card may not be sufficient to handle large expenses such as rent and employee salaries, you can use this source of financing to meet many of your other expenses. Additionally, if you habitually make payments on time and in full, you will improve your business credit score, which increases your chances of obtaining a loan in the future. Look for a card with generous cash-back terms so that you receive money back that you can reinvest into your company.
Use Your Unpaid Invoices
Invoice financing lets you access funds tied up in your unpaid accounts receivables for immediate expenses. Using unpaid invoices as collateral, lenders advance you the funds owed for products you have already delivered or work you have already completed. Invoice financing has the added advantage of being easier to qualify for than other types of loans.
Finance Equipment Purchases
If you require a loan specifically to purchase equipment, your company cash flow is not as important as other factors such as the value of the equipment, what you need it for, how long you have been in business, and the state of your credit. The equipment itself acts as collateral. If you need machinery, vehicles, computer systems, or other equipment to stimulate company growth, this type of loan makes a great deal of sense.
For more advice on funding your business even if you have limited cash flow, contact Rotay Capital Finance.