Are you confused about how to approach working capital options? Should you work with your local bank? Or should you seek solutions elsewhere? It all comes down to choosing a financing option that will improve your business’ situation both short- and long-term. Consider the following 6 words about working capital to help get you started:
“Avoid a long and disappointing wait”
The first tip is to determine what financing options are actually available to you. If your business is in need of working capital, your time is likely limited. Discovering your business is low on cash means covering expenses, paying employees and purchasing inventory will be incredibly difficult, if not impossible. Having to wait weeks, or worst-case months, could mean the end of your business. Alternative lenders like First American Merchant (FAM) provide working capital in as little as 24 hours. The key is to choose the working capital option that avoids unnecessary delays.
“Banks are not an ideal solution”
In most cases, banks are simply not an effective solution for any working capital situation. The majority of banks are routinely trying to reduce or eliminate lines of credit. If your business is considered “high-risk” in the eyes of the bank, the likelihood of funding diminishes even further. This is why phrases like “business loans without banks”, “thinking outside the bank” and “alternative working capital funding” have become so common.
“Working capital management must be consistent”
With other forms of lending fading, working capital options have become a priority. Where other traditional funding has failed, short-term financing has become the “plan B”. In faithfully monitoring your business’ working capital, you could potentially reduce credit card processing fees when securing a merchant cash advance. Many business owners fail to properly manage their working capital. To avoid the many consequences that follow mismanagement, frequently and thoroughly manage your working capital. You will thank yourself for it down the road.
“Working capital experts are a must”
It’s so easy to become overwhelmed when seeking working capital solutions. Finding a working capital expert is a wise decision. Even if the process with banks was simpler (which it isn’t), it would still be prudent to seek the advice of an expert. New funding sources and new working capital options can make the task of choosing a financing solution difficult – even dangerous for your business’ financial health.If you choose an option that doesn’t fit your business’ needs and situation, you could quickly push it into a downward spiral of debt and fees.