If you’re an entrepreneur, then chances are the cash flow from your business will be limited for some time. If your budget is tight, it can be hard to finance even a primary expense. But it doesn’t have to be this way! We’ve put together this comprehensive list of ideas and strategies perfect for funding your business on a short-term basis. Hayden Holland Arizona suggests the top five ways to finance your business. These ways are;
1. Trade credit
If you’re unable to get an invoice for one reason or another, you can try trading credit. Many wholesalers offer trade credit as payment on larger orders. However, it’s worth asking smaller suppliers, particularly if you pay on invoice. The risk of doing this is that the supplier might go bust before they can pay you – but if your business is well-established, they should be able to afford it.
2. Bridging loans
Smaller businesses can also apply for a bridging loan from a specialist lender. Banks rarely lend to companies that cannot explain their cash flow, so they only offer to lend on specific terms (usually over 12 months). However, specialist lenders, like Hayden Holland Arizona, work with small businesses that provide details of their accounts and how much credit is available. If you don’t want the hassle of writing all your documentation yourself, you can also use a commercial document preparation service.
3. Crowdfunding
Crowdfunding is a great way to promote business growth and finance projects; you raise money, but you also engage with an audience that likes your idea and believes in your ability to deliver. Many crowdfunding sites will offer loans that you can use for your business and investment, so it’s worth checking them out if you have time to invest in the process.
4. Commercial bank loans
It might seem counterintuitive, but the best way to get a business loan is to need a business loan. If you’re in urgent need of cash, you’re more likely to convince the bank that your business is viable and that you’ll be able to pay back their loan. You should also be able to supply bank statements and other information about financial stability.
5. Sell assets
If all else fails, you can sell assets. That is something that only experienced business owners should consider doing, as you might have to pay a premium if the asset isn’t in as good a condition as you expected. However, it can be the most affordable option. Some businesses go bust because they cannot raise enough funds to replace their assets; if this is your situation, sell everything you can. That will cover your costs and might leave you enough money to restart another company.
Final verdict
Hayden Holland Arizona is the best choice for you if you want to fund your business. They are one of the most reputed and trusted banks in this industry. Give them a call or visit their website today to know more about their services!
