It’s not just in your personal life when you might suddenly need some money. If you’re running low on funds and you need cash fast, it can be tough to think of ethical ways your business can get what you need. Fortunately, there are plenty of options for you if you need to give your cash flow a boost. Whether you need to try and get the money you need within a couple of days or you have a few weeks or months to gather the funds, you can find a method of raising the money that will work for you.
Get a Cash Advance
A cash advance could be one possibility that’s available from some merchant account companies and payment solution providers. If you use a company to handle your credit card sales, you might be able to borrow some money that would then be paid back by future credit card sales. It was once a rather expensive method to use, but your options today could be much more flexible and easier to repay. It might sometimes be called a line of credit or known as another term, but you can often find this option and apply for the money you need in no time. Just remember to compare the fee to other possibilities to decide if it’s worth it or if there’s a better way to raise your money.
Borrow Your Own Money
If you personally have money, but your business doesn’t, one option you might consider is lending your money to your business. Your business can then pay you back as the funds become available. There are several ways you might put your own money into your business, from using your savings to taking out a personal loan. However, if you’re considering using personal assets to bolster your business, remember that it doesn’t come without risks. If your business doesn’t make that money back, you’re now personally worse off, and your business isn’t doing any better either. Loaning the money to your business might work if you’re sure you can pay it back soon, but it’s important to be cautious.
Sell Your Equipment
Sometimes, your business might be asset rich but cash poor. If you need to change that, selling some of your equipment could be a good place to start. Maybe you’re looking for money for new equipment anyway, or perhaps you’re scaling back your business and don’t really need what you currently own. If you want to sell your equipment, there are a few ways you might do it. A lot of business owners will browse auctions if they want to save money on their equipment, so it can be a good place to start if you want a quick sale. You could also seek a second-hand equipment dealer to see if they want to buy from you.
Crowdfunding can sometimes be a useful method for raising funds for your business. However, it’s not always best suited to anyone who wants to raise money quickly. You also have to be very smart about promoting your campaign to get it the attention it needs. It is possible to crowdfund and reach a goal in a short amount of time, but you already need to have the audience on various channels, such as social media and your mailing list. You also need to have an incentive to encourage people to invest their money. What do they get in return? It needs to be more than a good feeling for supporting your business.
Look at Microloans
A microloan is a loan under a certain amount, such as $50,000, which is often easier to apply for than larger loans. Find a lender that specializes in smaller loans, and you could find that your business has an easier time getting the money you need. Some of them have loans that are intended for specific types of business, particularly those that might struggle to find funding from elsewhere. Try someone like Accion or take a look at the approved microloan lenders that work with the Small Business Administration. You might be able to secure a loan through your local SBA office if you have one.
Try Factoring Invoices
Factoring invoices is the practice of getting an advance on unpaid invoices. This can be useful if you’re waiting for payments, and you don’t want to hurry your customers along. You’ll get the amount on the invoice, minus the fee that factor will charge you, and when your client pays it will clear off your debt. Fees can sometimes be fairly high, so not all businesses will want to use this method of raising cash. Be cautious about using it because it might not be the best choice for you.
Provide Incentives to Pay Invoices
If you don’t mind giving your customers a bit of a push to pay their invoices early, that can be an easy way to make some money too. Instead of having to wait another month or two, you can encourage them to pay sooner so you can get the cash you need. Provide an incentive or two for early payment, such as offering a discount, cashback, credit, free delivery or anything else you can think of that they might want.
Encourage Some Quick Sales
Another way to quickly raise some cash for your business might be to encourage some quick sales from customers. If you can put on a special offer or create a discount for a short period, you might be able to drive some higher sales for a while. It might be enough to give your cash flow a boost and get you the funds you need. You could create a special discount code, give away a free gift or have a flash sale to get people interested in spending some money. Even offering free delivery can be enough to get people to make a purchase.