Any business can hit a cash flow hurdle or suddenly need funds to fulfil a new order. And as any businessperson knows, banks are not in the habit of making quick decisions. So when you can’t afford to wait, what are you supposed to do? Here are a few suggestions.
1 Use your existing overdraft
If you already have an overdraft facility in place, the problem is solved – you can borrow whenever you want and for any purpose you choose. However, bear in mind that you will pay for the flexibility – business overdrafts tend to attract high interest rates and many also involve fees if you choose to use them.
2 Look at online lenders
In general, online lenders make decisions much more quickly than banks. However, like banks they will probably want to see quite a bit of financial information, including business bank statements, tax returns, your balance sheet, articles of incorporation and perhaps a cash flow projection. Make sure you have all this paperwork to hand or you could delay the process.
3 Consider self-financing
If you don’t have an agreed overdraft and don’t feel comfortable approaching online lenders, you may find you already have the funds you need. If you have personal savings or a retirement fund, these could temporarily be loaned to your business. Alternatively, you could consider selling or pawning any valuable possessions.
4 Talk to alternative lenders
When banks say no, alternative lenders will often say yes. With different criteria and a more streamlined application process, alternative lenders can be your best choice when you need a loan and you need it now. Further, alternative lenders usually offer innovative solutions, such as emergency business loans within 24 hours, asset-based finance and invoice factoring and discounting.
5 Make sure you talk to Cashsolv
Cashsolv are specialists in solving business finance challenges fast and without fuss. With an emergency loan, we can have the funds in your account in under 24 hours and with asset-based finance we can lend against the value of your plant, premises or equipment – so a poor credit score need not be a barrier. Alternatively, if you opt for invoice factoring or discounting you can borrow up to 85% of the value of your invoices as soon as you issue them, with repayment being made when your customers pay you. Choose factoring rather than invoice discounting and we can even take control of your debtor ledger and deal with any arrears on your behalf to minimise the interest you have to pay.
To discover what Cashsolv can do for you, please visit our business finance page.