Almost every small business needs to borrow money at one point or another. It doesn’t necessarily have anything to do with performance. Even the most successful companies need financing at some point during their life cycle — and in many cases at multiple points. Whether they use the money for an immediate need, like hiring staff or buying equipment, or they want to use the funds as a cushion for unexpected situations, there are many reasons you should seek financing for your business.
Growing your business
Perhaps you need to hire staff to help you manage day-to-day operations or maybe you need to invest in technology or infrastructure. Borrowing money to invest in these initiatives will pay off by helping your company grow and thrive.
Buying better equipment
In order to grow, you need to be able to handle capacity, so you might need new equipment to keep up with customer demand. However, buying new or upgrading existing equipment can be an extremely costly proposition. Getting funding to help with this will go a long way in helping your business run more smoothly and become more profitable.
Getting better office space
Are you an entrepreneur who has been working out of your garage? Or maybe you have a small office, but have outgrown your space? You might want to consider financing in the form of a mortgage, so you are able to get the perfect space to suit your needs.
Stocking up on inventory
If you are in the manufacturing business, you know that running out of stock and being unable to fulfill orders can be a nightmare. Financing can help you load up on inventory ahead of time to ensure you have enough backstock for busy times or when a surge of unanticipated orders comes in.
Having immediate cash flow
Businesses always need cash, but waiting for clients and customers to pay them can cause a lapse in cash flow, as invoices generally have a 30-60-day pay period. Luckily there are many options available for businesses to get a factoring line, or accounts receivable financing. The financing company will pay you in advance for the value of your outstanding invoices and then gets paid back whenever your customers pay their bills. You can then immediately use that cash for anything you need, from daily business operations to bigger expenses.
Finding the right partner to help you with financing is important. Depending on what your needs are, you might decide to work with several different lenders. ExpoCredit can help you determine what form of financing is right for you. We are experts in accounts receivable financing and supply chain financing, which makes us a perfect partner for small businesses. We turn your invoices into immediate cash, so you can concentrate on running your business. Visit www.expocredit.com to download an application.