Going into business isn’t for the faint of heart.
Before they’ve tried it, many people have rosy view of what it will be like to work for oneself.
Getting to make all the rules. Keeping whatever hours they want. Only taking on projects that excite or inspire them. And of course, being the end of the line for whatever revenue happens to come through the door.
The reality of owning your own business, especially in the B2B sector, is that it’s a tremendous amount of work. Yes, you get to be your own boss, but in most cases, that also means that you’re someone else’s boss. They’re relying on you to pay their salary on time, provide them with a safe place to work, and supply the equipment they need to do their job at a high level.
Meeting these needs on a daily, monthly, and yearly basis means having a reliable cash flow that can provide the working capital you need to buy equipment or finance expansions. If you run into cash flow issues and can’t come up with the working capital yourself, you have to seek financing from outside source.
The Commercial Finance Group is in the business of providing the working capital businesses need to survive and thrive. We do this through factoring, asset-based lending, and receivables financing.
We can be your alternative when more traditional financial institutions reject your application for funding.
Keep reading to learn more about what you should do when the bank says ‘no’. Watch and share the video below to spread the word about how our asset-based lending and other custom financial solutions can help B2B companies build a bridge to bankability.
Reasons Companies Need Working Capital
Working capital makes it possible for large companies to:
- Borrow money
- Increase their share prices
- Pay expenses
- Cover short-term debts
Working capital makes it possible for small companies to:
- Borrow money
- Finance expansion
- Hire new employees
- Cover leases/mortgages/payroll
- Pay suppliers
Ways Of Improving Working Capital
There are several ways that a B2B company can work to better manage and increase its working capital. However, it’s important to point out that many of these must be executed in advance of a cash flow crisis.
- Offer early payment incentives
- Introduce credit card payment options
- Negotiate early payment terms with vendors
- Closely manage your variable expenses to your sales forecasts
- Understand what financing options are available to your company
Why Some Companies Can’t Access Working Capital
When a company finds itself in need of extra working capital to finance and expansion or cover operating costs while waiting for payment from a large client, the knee-jerk reaction is often to approach a bank for a short-term loan. However, banks are likely to deny this request unless there is some sort of established credit relationship. For those that have just had a checking account, the bank will need adequate time to underwrite the business information. Often companies find themselves not having the benefit of time.
When the bank tells you ‘no’, don’t panic. Just call The Commercial Finance Group.
Asset-Based Lending Is A Non-Traditional Path To Bankability
We specialize in the financing alternatives to commercial loans. We’re proud of the fact that our small business lending solutions have helped many companies execute their plans and continue their growth.
