When businesses are experiencing cash flow problems due to late-paying clients, low seasonal sales, fast-paced growth, or some other factor, it can be difficult to do anything beyond simply making ends meet. This is especially troublesome for new businesses that do not have a large amount of equity to draw upon during tough times.
Thankfully, there are ways for businesses to secure working capital and solve existing cash flow problems even if they cannot currently take out a traditional small business loan. In fact, that’s where we come in! Here at The Commercial Finance Group, we like to call ourselves your “bridge to bankability.” We know that many business owners find themselves needing a better cash flow but aren’t finding the right solution through a bank. When traditional small business lending isn’t cutting it, it is easy to feel like you have reached stagnation. Our goal is to ensure that your business doesn’t stop growing just because your cash flow isn’t meeting your needs.
10 Things You Can Afford With Better Cash Flow
This is a question we are often asked. Businesses need cash to grow. Even if you are able to pay rent and make payroll, you can still benefit from finding a small business lending solution that works for you. Below, we are offering up some ideas on what you can do when your business has a positive cash flow. Keep reading to get inspired!
- Pay Your Employees: This is, of course, one of the most vital aspects of running a business. Employees need to get paid, after all. When you have late-paying clients or your money is tied up elsewhere, you might start to get nervous come payday. Utilizing invoice factoring services or asset-based lending can help you have access to funds when you need them most.
- Build Your Emergency Funds: Speaking of having access to funds, it is important for business owners to have an emergency business account. This is money that should be set aside each month and left untouched until you really need it. With a positive cash flow, you will finally be able to put away a few percentage points of revenue and watch it quickly build up.
- Invest In Marketing: If you provide an amazing service or product but no one can find your business, that can be a major factor that is prohibiting your growth. Use your new funds to invest in marketing initiatives and get your business out there and in front of customers who are trying to find you.
- Update Your Website: Often times, business websites are neglected and finances are used elsewhere. However, in this era when most business is conducted online you can’t afford to not have a modern, secure, and mobile-friendly website. If your website doesn’t look as good as your competitors, allocate funds to create a brand new website.
- Upgrade Technology And Equipment: Business technology is always evolving. If your technology is outdated, utilize your small business financing to update computers, software, and other technology. This would be a great opportunity to request feedback from your employees, as they are the ones using the technology every day and can provide valuable insight into what needs to be upgraded. Along those lines, if your business relies on machinery, be sure this is well maintained and if available, look into buying or leasing the latest equipment to increase efficiency.
- Renovate Or Move Offices: If your office space just isn’t set up for the daily tasks your employees do, it might be worth it to begin renovations or move to a new office entirely if you have outgrown your existing one. Of course, you shouldn’t move just because you can, but if there would be significant value in finding or creating a new space, it could be worth it.
- Pay Off A Chunk Of Debt: If your business is in debt, then improving your monthly cash flow can give you the funds you need to allocate monthly payments toward your debt. When ends are barely meeting, it is easy to let late payments stack up. This can ruin your credit and make it difficult to ever obtain a traditional small business loan.
- Expand: If you’ve been dreaming of opening another location, breaking into a new market, or otherwise expanding your business, invoice factoring companies or asset-based loans could be the small business financing solution you need to finally take that leap. If cash flow problems are holding you back, we can help.
- Hire New Talent And Train Existing Staff: When you receive small business financing through invoice factoring, asset-based lending, or a small business loan, you can use that money to find new talent and provide professional development opportunities for existing staff. Using a recruiting firm can help you find the most qualified candidates for the job while investing in the development of your staff can help prevent costly employee turnover. With a little more cash flow each month, you can also afford to hire better talent and ensure you are working with only the most qualified people.
- Pay Taxes And Other Large Fees: When tax season rolls around, you might find yourself wondering how you will be able to pay when you have current clients with outstanding balances. Using a service like invoice factoring can provide you with a lump sum of money immediately and provide a little bit of breathing room to get you through tax season.
What Would You Do With Better Cash Flow?
If you weren’t experiencing cash flow problems, where could your business be? At The Commercial Finance Group, we offer unique business lending opportunities that provide you with working capital to meet your needs on your way to bankability. Our cash flow solutions range from invoice factoring to asset-based lending to purchase order financing and more. We will listen to your story, assess your needs, and find out if and how we fit into the picture. If you want to start your journey to finding cash flow solutions and keep your business finances healthy, get in touch today.
