If you need quick business loans to help you out of a short-term cash flow crisis, what you don’t need is hassle when making these loan arrangements. We know all too well that any delay in making those funds available can lead to an operational headache, or threaten the survival of your business.
Reasons you may need a quick business loan
There could be an unexpected interruption in sales such as a delay in the delivery of stock that slows the flow of money coming into the business. It could be that you need quick business loans to pay for expensive new equipment or machinery in order to maintain production or cope with a sudden increase in demand. In difficult trading conditions, the customer has also become savvier, and more reluctant to make an immediate purchase, if they even make a purchase at all. As a result the retailer is late in paying you, the distributor. They, in turn, seek extended payment terms in order to assist their own cash flow. Suddenly, your usually strict 30 days terms of credit are being extended to 45 days or even 60 days. You will be paid, eventually, but later than you were expecting.
A short term business loan does not always have to be used to plug cash flow; it can be used as a tool to speed up business turnaround. Taking the right loan at the right time can be a great tactic to help you take advantage of business opportunities that come your way. The speed in which you can secure funding may determine how quickly you can push out in front of your competition or equally ensure your business does not plummet further into uncontrollable cash flow problems.
What may limit your chance of getting quick business loans:
We are aware that banks are lending to more established businesses who can present realistic forecasts based on previous profits, yet we hear that the smaller players are struggling to get the funding required. What is often overlooked are the impracticalities that small businesses have to go through to be at the stage where they can present a case to their bank due to a lack of resources and expertise, such as providing detailed forecasts and accounts and putting forward a solid case for additional funding. This is before you consider that quick business loans are usually required in an emergency. For example, you may have been expecting a large receipt on a Thursday to be able to pay staff wages on Friday and for some reason the money doesn’t come in. Being able to receive a quick business loan within 24 hours in such circumstances is invaluable. Such a quick turnaround is just not possible when lending from a bank or even peer to peer lenders who are legally tied to time consuming supporting processes and documentation.
Why a short term quick business loan can be the best for your business:
There are alternative business finance lenders who can provide short term business loans within 24 hours of approval to help with immediate cash flow problems. Whatever your circumstance, the main advantage of opting for short term business loans is that you know your business will only have to make repayments for a limited period of time. You will also usually pay less interest on short term business loans compared to options to repay loans over a longer term.
But what if you’re still struggling to get a short term business loan? Asset financing is another option you may want to consider for crisis business loans. If you have accounts receivable, scheduled payments incoming, equipment, contracts, or any other type of assets then you may be able to use them to secure a loan of equal value. Or you may address some of the other areas within the business to improve your cash flow.
It’s important to act quickly and take proactive steps to address the problem rather than ignore the signs of cash flow problems. If you act quickly cash flow problems do not have to signal business failure and you can look forward to a bright future ahead.
Stewart Goldsmith is a business recovery specialist. He started work in the Business Recovery profession in 2003 and has continued to pursue an ethos of working with distressed businesses to help them overcome their financial problems. As a Client Director of Cashsolv, he offers advice and support to overcome cash flow problems and identify possible underlying problems that can be addressed to ensure a positive future for your business.