Here are the Realtime Benefits of Accessing Your Money Instantly
According to reports from CB Insights, a data analytics firm from New York, 29% of companies cited maintaining cash flow as one of the reasons for their failure. This is a reality that most small business owners face, and there aren’t many options to solve the problem.
The challenge lies in balancing between customers who pay late and suppliers or lenders who demand to be paid immediately. Though it can be difficult to maintain this precarious balance, the business’s survival depends on positive cash flow. Here are a few ways to make sure your cash flow doesn’t dip into the red:
Manage Working Capital Gap
- To facilitate the smooth running of business operations, small business owners need a positive flow of working capital. Failure to maintain a positive cash flow might impact meeting short-term obligations or make use of a business opportunity. Short-term loans could be suitable option to avoid such circumstances.
- With lesser financial burden, business owners can effectively cover their short-term liabilities.
Purchase New Assets/Machinery for Business Expansion
- One of the healthier signs of a thriving business is the ability to invest in new machinery and assets. Running a business is all about making investments that would support both long-term & short-term growth. With more emphasis on technology, the need to invest on latest machinery becomes more invaluable.
- When a small business has sufficient cash flow or access to funds, it is possible to make such investments on the latest technology ensuring one can stay with the competition without being left behind.
Dealing with Company’s Debt
- Debt management proves to be one of the biggest hurdles for small business organizations. When a business with less income has to meet outstanding debt obligations, the issues will only compound with time. A recent survey by Gallup, a research-based global performance management consulting company, found that 49% of small business owners found their debt unmanageable. Under such circumstances, small business owners can buckle under pressure to maintain financial stability and might even face bankruptcy.
- Short-term loans can help avoid financial crunch helping business owners have better control over debt management.
Manage Accounts Payable
- Accounts payable are the current liabilities or short-term debt that requires a company to pay its creditors. One of the efficient ways for accounts payable management is seeking financial assistance. By freeing up cash from outstanding invoices or taking short-term loans, small business owners can ensure optimal paying time for suppliers and creditors.
Taking Advantage of Unexpected Business Opportunities
- A perfect business opportunity - like buying a thriving business or an opportunity to own a business space at the heart of business center - might arise at any moment. It is always important for business owner to make use of such rare opportunities at a moment’s notice. Small business owners may experience challenges in securing a loan at a bank or credit union as credit standards can make it hard for small business owners to qualify. Additionally, most application processes are time-consuming. In such conditions, meeting immediate financing needs for acquisitions or opportunities to expand may have to be put on hold.