One of the main worries of business owners is money. And it’s completely understandable because money is the main lubricant of business success.
Without enough money, your business will not be able to survive for too long, and you could end up filing for bankruptcy.
But it’s important that you never get to this point in the first place. If money starts to get tight, there are plenty of places you can turn to for a quick injection of cash. Here are some of the best sources.
1. Business Loans
If your company hasn’t been doing too well recently, it may be difficult to get a regular business loan from your bank. Thankfully, there are other places you can go for a short term loan. Many business lenders offer a variety of loans to different companies.
These are easier to arrange than regular credit from your bank, and you will also get the money into your account quicker. Even though these short term loans’ interest rates are usually on the high side, they are easier to pay off as you can only get small amounts.
2. Merchant Cash Advances
If you’d rather not take out a loan, you can always consider getting a merchant cash advance. This will come from the company who processes your transactions for you on your card terminal provider. Any business which accepts credit card payments is able to get one of these advances.
The best thing about these advances is that there are no credit checks to go through since your terminal provider will have complete visibility of your business’s finances.
Over the past few years, crowd-funding has quickly become one of the best modern sources of cash. There are now many different crowd-funding websites that you can use for your project. One of the most popular is Kickstarter.
The whole idea behind crowd funding is to get people to raise money for projects and new products.
You will need to think of a project that you need cash for and publish your plan on the website. Then people will invest cash in your project in exchange for rewards and privileges.
If you are waiting for a lot of invoices to be paid, you should consider getting a factoring company to help you get the payments. Many financial advisors recommend this method to help companies raise revenue.
The company will pay you the amount of each invoice minus its fee. It will then take on the debt and will get the money from your clients themselves.
5. Slow Down Your Payments
To free up some of your money, be a bit slow when paying invoices. Don’t pay any until their due date. If you need a bit longer to pay them, you could even contact vendors to try and negotiate new payment terms.
When negotiating, make sure you do so before you run into payment difficulties. This way, the vendors might be a bit more accommodating.
There are countless ways you can raise extra money for your company. The ones above are just some ideas to get you started!