Anyone with a business will be able to agree that sometimes, they can come to a fall, in which time they would need a ready fund. It could be due to the seasonal slump, a client going AWOL, or bad luck with business partners. Usually, there is an emergency fund set aside for urgent and critical projects or funding. The problem arises when the emergency fund is not enough. Luckily, there are quick cash solutions entrepreneurs can use during such emergencies.
But before we get to those options, be sure that you’ve accounted your business’ current financial situation accurately. Only then can you look at all the sources which you can tap and look for financial institutions that may be able to help you. When you’ve finally exhausted all sources, you can try any one of the following:
Business Cash Advance
There are a lot of merchant account institutions and digital payment solution providers that offer advances for future credit card receipts. Once you’re advanced the money, you need to repay it with a portion of your future sales. This is known as merchant cash advance. Though this used to be the most expensive means of raising money, a lot of modern programs have started offering better terms.
You can always raise quick cash by getting a personal or business loan. It doesn’t matter which. There are several groups that specialize in giving small loans to businesses in trouble. This microloan program uses about 150 microlenders to give a helping hand to starting and struggling entrepreneurs.
Apparently anyone can raise funds using this trendiest funding concept– from a senior high school student needing a gown to an aspiring scientist needing money to buy electronics. Of course, starting entrepreneurs are not an exception. Crowdfunding can help you raise money from investors with little to
Factoring is not applicable to all businesses. However, if yours already have a large number of invoices and receivables, then you can highly maximize this. Find a factor and assign it to an invoice. Then, get the full amount of the invoice less that the factor’s fee. This will surely help you raise just enough funds within a month to at least give salary to your employees.
Discounts and Sales
With discounts and sales, you will be inviting more customers and increasing your profits. Use it to your advantage wisely. You can offer it to the first 100 customers or tag old stock items with 10%-50% discounts.
Never say it’s over until it’s actually over. If your business is currently facing its lowest point, exhaust all options before you quit. And even if you quit one startup, don’t be afraid to move on to the next idea. You can’t believe the number of businessmen who became successful only after experiencing several failures and downfalls. If you want to be one of them, take the risk, be creative with your strategy, and be most careful with your finances.