Cash is the life blood of any business, but there are times when cash is not as readily available as it needs to be. When the money runs low, you could go to a bank and apply for a loan. But it takes time to process a loan and you could be in serious financial trouble by the time the loan is approved. There are other ways to raise money fast to keep your business going, even in the most desperate of times.
Invoice factoring is the process of taking your outstanding invoices and turning them into cash. It is important to find an invoice factoring services company you can trust to get the job done, and it is essential that you understand the factoring agreement before you sign it. A good factoring company can get your account set up quickly and turn outstanding invoices into the cash you need right now.
Some business owners avoid selling assets in difficult times because they feel as though it is desperation. But the truth is that successful companies have no problem selling equipment or real estate they no longer need to make sure they are able to cover payroll for the next pay period. If you have assets that your company no longer utilizes, then it is time to find out what those assets are worth and put them up for sale.
Line Of Credit
Most banks will approve a revolving line of credit much faster than they would a loan, and you can even utilize business credit cards as sources of fast cash if you need to. Be sure to shop around and find the best possible deal for your line of credit and try to get a line of credit that will assist in paying for other aspects of your business. For example, if your field personnel travel a lot then a credit card with travel miles would be an ideal solution.
When your business needs cash, you do not have time to be picky. You should have contingency plans in place at all times to help bring in needed cash, and you should never hesitate to utilize one of the plans when the time comes.