If there is one thing that can take a small business out fast, it’s experiencing ongoing cash flow issues. And it’s not just about profitability; it’s also about having a cash management process. According to The Balance, as many as 60% of small businesses cite cash flow issues as the top reason for going under. Having a solid strategy to manage the money flowing in and out of your small business, should include at least in part the consideration of small business loans. This is especially critical when trying to grow a business.The causes of cash flow problems for small businesses
In terms of small businesses, which tend to have fewer resources available to them, the reasons for cash flow problems are many. Some of these reasons can include:
- According to Mill For Business, the tendency to dip into personal funds to pay for business startup and expenses, creates heavy risk and stretches the small business owner’s finances too thin.
- Poor startup cash reserves to carry the small business through the first 6 months or during slow times.
- Too much overhead, like office rent and equipment that has to be paid for in advance or in large chunks of money at a time.
- Getting behind on bills and racking up late fees and penalties on credit accounts and taxes, putting additional strain on the financial portfolio.
- Overly generous payment terms for customers, including Net30 credit and not following up on late payments on a regular basis.
- Lack of enough business coming in during slow periods, and too many expenses incurred during peak seasons can make it difficult to catch up.
- Lags between completion of work and contract agreements that put payments out for 60 days or more.
- Limited, poor or bad small business credit history which makes it impossible to get loans through traditional banks or grant programs.
While this is not an exhaustive list of reasons why a business owner may be going through cash flow issues, none of these factors need to prevent business growth. The good news is that there are many alternative small business loan opportunities that can help bring any business out of a negative cash flow situation fast.
Getting back on track and expanding with small business loans
If you are not sure what a small business loan can do for your cash flow problem, read on to learn more about how you can quickly get back to growing your business. A small business loan from United Capital Source can restore a previously good financial standing, and help to control cash flow.
An almost immediate cash infusion for the small business
When taking out a small business loan with UCS, the funds can be used right away for paying down debts and other obligations. This reduces overhead costs, and gets things caught up. Additionally, a portion of the funds can be bankrolled to pay for future expenses and carry the business over while waiting for client payments to come in. There are even special bad credit small business loan programs that can distribute these funds over time, using a merchant cash advance program. That way, the business has access to money on a continual basis.
Easy application process with zero collateral required
Getting a small business loan today is relatively painless, and the simple form takes no time at all to complete. An experienced small business loan representative can walk anyone through this process over the phone or even a convenient online chat! In most cases, a small business loan may be approved with no requirements of putting down property as collateral. Unlike traditional bank loans, which may require you to put your home or business down as seize able in case payment isn’t made on time, alternative small business loans look at other factors to determine your eligibility. For example, how long you’ve been in business (at least 3 months), your monthly earnings, and references often suffice.
Access to low interest, flexible repayment terms
You may think that a small business loan like this will end up having sky-high interest rates, but that is actually a myth. In fact, there are a number of competitive small business loan interest rates that you will be considered for. We are against all forms of predatory lending practices that can go on with other lenders, therefore we make it a point to get you the best possible small business loan at rates you can live with. A wider network of lenders is only one part of the benefit that you can expect when looking at small business loan options.
Establishing a good credit history for future cash management
Want to rebuild your business credit while you also take care of growing your business? It may seem impossible, but with a little creative financing in the form of a bad credit small business loan, it’s absolutely possible. Start putting together your dream checklist for your business, because you will want to learn how to get the loan that can put your business in front of the competition. Have a new idea you want to take to market? The time is now for investing in the future success of your small business.
Ongoing support for every growth step that the business takes
Perhaps the most challenging aspect of being a small business owner is not being sure who to listen to for sound financial advice. There are many companies toting their programs and ideas, but very few have been in the business of supporting the dreams of entrepreneurs for as long as United Capital Source has. Other companies do not have the positive reviews and testimonials from the thousands of clients we’ve done business with, nor have they received the recognition and awards we have. As you seek out cash flow solutions for your small business, keep these factors in mind because you need a strong source of support and guidance to help your business thrive.