Small Business Methods to Raise Cash Quickly

Small Business methods to raise cash

Businesses need cash to operate. There are a number of circumstances where a business owner cannot get his or her hands on the cash needed in order to buy products, pay off a vendor, or pay the mortgage. This cash shortage could be the result of the business going through a streak of bad fortune. A business may need cash temporarily while waiting for a customer to pay them. Regardless of why a business needs cash, there are very few things that are as stressful for a business owner as needing to search for new streams of revenue. If you find yourself in this unenviable position, here are a few suggestions that might help you get the cash you need.

Try a Business Cash Advance

It is in a merchant account company’s best interest to have businesses use them for their credit card business. It is little wonder that merchant account companies are willing to give “merchant cash advances.” These are merchant advances that are given against future credit card receipts.

In the past, merchant cash advances had a bad reputation. They were known for being expensive and being a last-ditch and desperate source to go to for funding. Things have changed. Modern merchant cash advance programs offer better rates. There are even hybrid programs that extend you a line of credit or working capital.

Try Factoring Invoices

Factoring invoicing is a type of financial transaction and a debtor finance. What you do is take invoices that you are having trouble getting paid and sell them to a third-party at a discount. The third-party will then be responsible for collecting the invoice. You will be able to use the cash you receive to address any financial difficulties you are experiencing.

Factoring invoices has its pros and cons. A serious con of factoring invoicing is the fees that you are going to have to pay. They are usually very steep. But if you have got people who you own money to knocking on the door, it can be a viable option for keeping them at bay.

Consider Equity Loans

Most businesses avoid car title loans like they are a plague. However, it can be comforting to know that other businesses have taken advantage of this type of vehicle registration loan and things have turned out all right for them. If your business is relatively solid and you have some type of auto registration equity, this can be one of the easiest sources of capital available to you. It can be risky if things do not play out the way that you expect. You could literally lose the car if your do not pay your car registration loans online or at the title lender. However, there are enough benefits that make it worthy of consideration.

Vendor Credit

If you have been a good customer for a number of years, some vendors may be willing to extend you credit. It’s possible that they have a financing program that could benefit you. A popular form of vendor financing is called pay as you scan. Basically, you pay for products once you have scanned them and sold them to your customer. This means that you don’t have the cost of carrying excess inventory. This underscores the importance of having a good relationship with your supplier, as they may be more inclined to extend your credit.