The need for credit is high especially for new business owners. Funds are required to purchase inventory, pay salaries, and fulfil other monthly obligations. Fulfilling these obligations through existing funds is not that easy especially in the case of irregular cash flow and slow paying customers. You need to select the right small business financing solution to ensure that you obtain the funds right away whenever required.
Obtaining working capital financing today can be a lot difficult especially for small businesses. Most lenders do not cater to small business owners. And those that do charge high fees that makes it hard to pay back. Moreover, you have to go through a lengthy approval process to obtain the loan. Weathering the financial storm becomes difficult when faced with this situation.
Fortunately, there are alternative options for small business owners to meet their short-term financial needs. Below are 3 of such alternative funding sources that can help small businesses to remain viable, stable, and competitive in the market.
1. Invoice Factoring
Companies that provide invoice factoring allow businesses to obtain funds by looking at their account receivable. The funds obtained by factoring are not technically a loan, but a cash advance. Nevertheless, companies can greatly improve their cash flow through this financing option. Credit score of the company is not important to obtain the funds. Moreover, the company does not need to provide any collateral for the cash advance. Finally, it is usually less costly for small businesses as compared to traditional financial loans.
2. Purchase Order Financing
Purchase order financing is another solution for small businesses to improve their working capital. This financing option helps re-sellers and distributors to obtain the fund that they require to pay their vendors. Small businesses usually do not have the required resources needed to fulfill costly purchase orders. Purchase order financing allows small businesses to obtain the required funds to pay for the order. It offers the perfect solution to cover expenses related to vendors and supplies that are associated with the order.
3. Working Capital Small Business Loan
Working capital small business loan is a highly flexible financing option for small businesses. The financing option allows business owners to pay for only the amount that they utilize. This is especially helpful in funding seasonal stocks and meeting temporary spike in demands of the customers. Small businesses can use the funding option to keep their cash flow healthy during lean periods when the business activity is low while the costs remain high. Accountable Capital provides working capital loans to small business owners and has a high rate of approval. Eligible individuals can obtain the loan within just 24 hours of filling out the loan application.
Do you want help and advice in obtaining working capital loans for your small business? You are welcome to contact us to get all the information regarding the loans. Our experienced team of financial experts will offer complete guidance in solving all your business funding needs.