Article summary: If you are asking, “What can I do when my business needs money fast?” it doesn’t mean that your business isn’t a good one. In most cases, it’s simply a situation where things got ahead of you or you are hit with an expense you did not budget for. And you are not alone. Learn more about how you got into this situation and, most importantly, how to get yourself out.
Why You May Say My Business Needs Money Fast
Of course, having a handle on your cash flow issues is the best way to prevent financial emergencies. Still, unforeseen things do happen. When they do, a business owner might believe he is the only one who says “my business needs money fast.” However, there can be some very good reasons.
- A client check might have been delayed and payroll is due
- Cash flow might be down and an unexpected bill came in that must be paid
- Business might be growing so fast that it has outstripped cash and bank line of credit reserves
How to Tell Lenders My Business Needs Money Fast
It is best that when you do speak to any lender that you tell them the truth about what is going in the business. When you don’t there are serious consequences.
- The lender is going to figure it out anyway so you might as well know now if you will be turned down
- If a lender finds out you lied then they will not go any farther in the loan process
- Lying in business and in life just always comes back to bite you.
What Can You Do to Prevent Saying My Business Needs Money Fast
Know your business – this includes yearly revenue, net profit, accounts receivable (how much others owe you), and accounts payable (how much you owe others)
Make sure you know your personal credit score – more than anything else, this tends to be what lenders look at most (you can use online tools such as www.myfeecreditreport.com, and creditkarma or some banks/credit card companies will let you see it for free)
Pay attention to how much debt you have, if any – because it can steal your cash. If you are constantly paying down debt from small business loans and cash advances, you won’t have the money you need to make payroll or take advantage of opportunities for growth.
Can Anyone Help You When Your Business Needs Money Fast
What’s changed in the last 10 years is that alternative lenders like Financing Solutions (www.financingsolutionsnow.com) are now able to respond faster than ever before. In fact, you can often receive their fast business funding in about 48-72 hours.
Your best option is their business line of credit. With a line of credit from Financing Solutions, you always have a supply of money you can draw from when you need it. There is no charge until you actually draw from it so it’s a very inexpensive, effective backup plan. Every small business owner should get a line of credit in place, just in case.