When You Need Money for Your Business…Fast
When you need money for your business…Fast is the operative word. The ability to get cash when necessary is often the difference between hanging a sign that says we are open and hanging one that says out of business.
We live in a fast paced, blink-and-you’ll miss-something world today, with access to 24 hour everything. It seems like anything you could ever want goes flying by at light speed. That is, until you are trying to get fast cash for your business.
The Importance of Fast Cash for Your Business
Some people mistakenly believe that all you need is a good idea and a place to sell from in order to have a successful small business. Nevertheless, small business owners know that if you want to maintain and grow a business, it takes dedication, good decision making skills and sometimes you need money fast.
Many businesses operate by using account receivables, giving clients up to three months before they have to pay you. Account receivables are a great way to demonstrate that people are buying what you are selling, but it does not translate to the immediate money you need today.
Cash on hand is necessary to make payroll, pay your business taxes and to build working capital for development or expansion. When these items become due, your employees, creditors and the Internal Revenue Service will not wait for your account receivables to come in. They expect their money right now. If you cannot deliver, you may be in danger of going out of business.
Deciding How Much Cash You Need for Your Small Business
Financial experts are constantly reminding us about the importance of saving money. Most rely on a formula which recommends that every family have enough money in the bank to sustain them for at least three months. This is meant to ensure that you can still pay your mortgage and other bills if a disaster, emergency or unexpected job loss should occur.
For a small business, deciding how much you should have in your cash reserves may be a more complicated question. In reality, the best answer might be: it depends.
Different types of businesses have different cycles and expenditures. One business might need to continually replace large machinery while another could be seasonal in nature, with various highs and lows throughout the year.
It is important to periodically evaluate both the short and long term goals for your business. This will help you to maintain focus and ensure that you are making the best use of any money you have now or get later.
Among the aspects to examine are your current cash requirements and future growth potential. That said, you should also have access to enough cash to pay your operating expenses for a few months, in case of emergency. All this will aid you in determining how much cash you need for your business.
Where to Go For Fast Cash
Famed boxer Muhammad Ali once joked that he could turn off a light and then jump in the bed before the room gets dark. When you need money for your business, you want to get it that fast.
Traditional banks are notoriously slow when it comes to loaning money. That is assuming you could actually qualify for a bank loan in the first place, which most small businesses cannot. Banks require loads of collateral and have time-consuming applications which are useless when you need money fast.
Factoring companies can give you the money you need but it may take up to 30 days and they lock you into a long term repayment schedule that could take more than two years. In addition, they charge enormous fees which get added to the cost of your loan.
A cash advance company, like Financing Solutions (www.fundmypayroll.com), is an ideal place to turn when you need fast cash for your business. The application process is quick and easy and you could have the money you need within 48 hours.
You simply sell your account receivables and get the money you need right now, rather than waiting 30, 60 or 90 days for your customers to pay. This one-time financial boost of cash can be repaid in just a few weeks or months.
Best of all, most businesses are approved. If your small business is at least three old with sales of less than 15 million dollars, you will likely qualify for a cash advance. Therefore, it is definitely an option to consider when you need fast money for your small business.