Is Cash Flow Funding the Right Step for Your Business?
Written by US Funding on December 31, 2015
As a small business owner, it’s no easy feat to manage your company’s daily operations in addition to maintaining a steadily balanced cash flow. One of the biggest challenges small business owners face is keeping the cash flow positive, while keeping up with operational expenses. At times, they realize that they need some help getting through a period of slow collections! With so many overhead expenses, including payroll, rent, utilities, inventory, and office supplies, it’s not uncommon for smaller companies to find themselves needing a quick cash fix every now and then. That’s why US Funding recommends having a backup plan like cash flow funding to save your business from a potentially disastrous situation.
There are many different options available to companies that need a cash flow solution, but the criteria for each varies widely. Consider some of the reasons below why cash flow funding may be your best answer.
Your Business is Just Starting Out
Many businesses that are just starting out need a little help financially to get off the ground. This should be understandable to all lenders, but unfortunately, start-ups can be seen as liabilities with no assets or credit history, making it difficult to qualify for a lot of bank loans. This is where cash flow funding often comes to the rescue because it bases financing on a company’s projected cash flow, instead of the typical criteria.
It’s a Slow Season
It’s not unusual for many types of small businesses to have high and low seasons, where their cash flow is streaming in steadily for a few months before tapering off for a period of time. Without the regular income or cash flow funding, it can become tough to pay all the necessary operational costs that are still outstanding, during those tight periods. US Funding has helped to keep numerous companies from sinking during these downtimes with cash flow funding. It also helps them avoid the unpleasant duty of having to lay off employees.
You’re Waiting for Invoices to Be Paid Off
There are times when loyal customers or clients fall on hard times themselves and a business owner has to wait awhile to receive payment for pending invoices. Again, business still goes on regardless of the profits being recorded and expenses have to be paid in the meantime. Luckily, cash flow funding allows for this to happen in the interim…when you are waiting to receive payments. However, this situation should be assessed carefully to ensure this financing option makes the most sense, depending on how many invoices have yet to be paid, how long it will take to have them paid off, and the fees involved.
Getting to the point where a company has been successful enough to expand is exciting for a business owner, but it might take just a little more money than the current funds available to see it through. Company expansions may include the need for more staff, additional equipment, a larger workspace, or the acquisition of another business. Whatever the specific circumstance, cash flow funding will make it happen.
If time is of the essence and your business is in need of a reliable financing option, cash flow funding could be the answer you’ve been looking for. Talk to US Funding to find out more about our cash flow funding services.