To keep a business afloat, you need a continual flow of cash. Money is needed to pay for operational costs, staff, marketing, inventory, and everything in between. Therefore, when the cash slows down or suddenly stops, finding a funding source is necessary. When time is of the essence, going through a lengthy application and approval process of traditional lenders isn’t an option. Fortunately, there are funding options you can use when you need cash fast.
Online Installment Loans
Traditional bank loans require a wealth of information and a lot of time. They insist that applicants provide several years of financial history, a business plan, a track record of proven revenue, and in some cases, collateral. The process to review all of this information and deposit the funds could take weeks.
When you need cash in a hurry to fund your business, a better option would be an online installment loan. While payday loans may not provide you with enough time to repay the balance due, finding a payday loan alternative with more flexible options is simple. Online lenders will provide eligible applicants with as much as $1200 within 24 hours. All that’s required is that you be 18 years of age, have a reliable source of income, and a checking or savings account.
For a lot of businesses, the cash flow issue lies in the accounts receivable department. As they wait for customers to pay outstanding invoices and time goes by, the inability to pay for certain expenses becomes apparent. An option for those who invoice customers would be to locate an invoice financing company. Using your invoices as collateral, the company provides you with a lump sum of cash up front. Then once your customers pay the invoices, you’re provided with the remaining balance minus fees and interest. Not only is this method faster than a traditional loan, but invoice financing is a lot easier than getting approved for a traditional loan in that your invoices serve as collateral.
Small Business Credit Cards
Another option for getting access to quick cash for your business would be to apply for a credit card. This is beneficial in more ways than one. First, it’s a lot easier to qualify for than a traditional loan. Secondly, it can help you to establish business credit which can prove beneficial should you need to apply for a loan in the future. There are a lot of credit cards geared towards small businesses. As you compare products, be sure to review features that would benefit you such as points and rewards towards discounts, cash back bonuses, and even frequent flyer miles.
When funding sources like bank loans, crowdfunding, and lines of credit are difficult to get approved for or too long of a process, there are other options available. Whether your funds are tied up in accounts receivable, you’re facing a rough patch in the business, or you’re trying to survive during a slow period, the above-mentioned options will help you secure the funding you need. When borrowing from either of these sources, remember to do so responsibly to ensure that you can rely on these connections in the future should you fall on hard times.