How a Line of Credit Helps a Working Capital Cycle
Sometimes business is like riding a bicycle. You must keep moving and pedaling in order to keep your balance and not fall. There will be many certainties and doubts in your working capital cycle but you have to continue moving forward. This often takes a line of credit (LOC).
Every business has ups and downs in cash flow often called a working capital cycle. A LOC helps you by giving you access to cash when you need it. Learn more about this important business tool to find out if it’s right for your company.
What Your Working Capital Cycle Says about Your Business
A working capital cycle is the time between purchasing goods to manufacture products and receiving cash from the sale of those products. The shorter your working capital cycle, the quicker you can free up your cash to put back into your business.
Businesses with a long working capital cycle often get caught without enough cash flow. While credit is fine, you need cash to make payroll, pay vendors and take advantage of growth opportunities. If you can’t make these payments from your cash on hand, you may need a working capital loan.
When your business is liquid, it runs more efficiently. To better manage your business, you need to have complete control over cash, receivables, inventory and accounts payable. You might need to streamline your processes with tools such as cash discounts or a shorter credit period.
Where to Go for a Line of Credit to Help Manage Your Working Capital Cycle
There are numerous lending organizations willing to help large corporations with working capital. For small businesses, however, it’s a different story.
Banks expect you to have excellent credit and tons of collateral to even consider your application. Many alternative lenders can help, but some charge expensive fees or lock you into long term repayment schedules.
Financing Solutions (www.financingsolutionsnow.com) is different. They will give you an unsecured line of credit without the hassles or challenges of other lenders.
With a line of credit from Financing Solutions, you can manage uneven cash flow and continue to pay bills. In most instances, you can get a line in place in less than 48 hours. The line can stay in place for up to 12 months.
This is ideal for most businesses because you only use it when you need it. You can then repay only what you’ve used.
How to Manage a Business Growth Cycle
When your business is growing, there are many different aspects competing for more of your time and resources. The key to handling all this is delegating the right things at the right time.
One of the most vital issues could be your own time management. You can’t be everywhere at once so it’s crucial to hand off the smaller matters to trusted staff members. This leaves you with more time to focus only on the big picture stuff.
You will also need a comprehensive plan. As your business grows, just winging it is not a viable option. It’s vital to develop a comprehensive strategy to prepare for the future. Growth is easier when everyone knows the path and all are rowing in the same direction.
The best way to manage your growth cycle is with instant business funding from Financing Solutions. They will give you the financial resources you need to not only survive, but to thrive.