As the saying goes, “When the going gets tough, the tough get going.” If your business is struggling, line of credit financing may be just what you need to bounce back.
It may seem as if your bills and expenses travel around the world twice before your assets even wake up. With line of credit financing, you can get a handle on your finances, but first you need to know where to go.
What is Line of Credit Financing?
Line of credit financing is when you receive a set amount of money from a lender that you can draw from as you need it. It’s like having a box full of cash to be used in emergencies, or to manage uneven cash flow and daily expenses.
It’s important to remember that line of credit financing is still a type of small business loan. Therefore, before you use any of the money, you should have a plan for how you will pay it back.
You must also choose the right lender. Some charge a fee just to keep the line in place, even if you don’t use any of the money. Others use computer algorithms to determine eligibility without ever talking to you. If you don’t fit their criteria exactly, you will be denied.
Is There an Alternative to Banks for Line of Credit Financing?
Small business owners don’t have time to waste on the wrong lender. For the best option, turn to a cash advance company, like Financing Solutions (www.financingsolutionsnow.com).
With Financing Solutions, you can get a line of credit in place in less than 48 hours. Best of all, the line can stay open for up to 12 months.
They have a fast and easy application process that you can start with just a 15 minute phone call. Every small business owner should have line of credit financing, just in case.
Ways to Ensure Your Business Gets Paid
In business, you start with a great product or idea and hope it resonates with the public. But ultimately, getting paid for what you are selling is the name of the game. However, this is not always as easy as it should be. These tips may help you get your cash faster.
One source for quicker payments could be your invoices. Make sure it is sent promptly, ideally the same day the product or service is delivered. The due date should be clearly noted and it should include a description of the product to avoid any confusion. List discounts for early payments to encourage speedy payments. It’s also vital to list penalties for paying late. Additionally, some companies allow up to 90 days for a customer to pay. You might need to reduce that to 45 or 60, depending on your customer’s payment cycles.
The right follow-up techniques are also crucial. Don’t let due dates pass without at least a phone call or friendly reminder. Develop a system of constant communication so that customers get in the habit of hearing from you for more than just invoice payments. Encourage two-way dialogue so that if the customer has a problem paying an invoice, he or she will contact you to work things out before the due date.
Of course, the fastest way to get the cash you need is with help from Financing Solutions. They can give you the fast business funding it takes to regulate your cash flow.
