In a slow economy, businesses deal with a number of challenges that directly impact the bottom-line. In a strong economy, businesses need extra funds to keep pace with business demands and that’s a great problem to have. Whatever the economic conditions are, one thing is certain. Small and medium sized businesses need ways to stabilize working capital to face obstacles and opportunities head on.
Working capital is a key indicator of a company’s operational and financial standing. The better its condition, the better positioned a company is to focus on developing growth and overcoming difficulties. However, extending your financial resources by hiring more employees, or complying with more federal mandates, business owners can struggle with keeping working capital in good standing.
How can you ensure your company’s working capital is steady and healthy? Here are 6 things you can do to improve working capital:
1 Set up a Business Bank Account
If you haven’t done so, setting up a business banking account is a smart move. You’ll be establishing a banking relationship that can potentially extend a line of credit or a loan. No matter where you turn for funding, most lenders want to see your business banking history, not personal bank accounts. Position your business to be ready for anything.
2 Get Discounts on Your Biggest Expenses
Another way to keep more of the money you earn is to take advantage of discounts on some of your predictable expenses like fuel. Always look for ways to save on costs like insurance, load boards, ELD, tires, maintenance, and more. You’ll start to see the dollars add up to ultimately increase your profits.
3 Consider Alternative Funding
The increasing trend of banks’ unwillingness to lend money to small business owners has put a strain on the working capital of many businesses. Innovative options such as eCapital’s working capital advances are becoming an increasing popular way for small businesses to access funds.
4 Sell Long-Term Assets for Cash
That old tractor taking up space at the back of your lot might be an overlooked way to improve capital. Many times, businesses have products, equipment and supplies that are no longer needed. Look at turning these unused assets into liquid capital by having a seasonal clearance sale or posting items online at auction sites.
5 Settle Short-Term Debts for Less Than Stated Amounts
Just as it is imperative for your company to be paid on time, other business owners need their payments quickly too. Some businesses are willing to reduce the bottom-line amount of your debt if you offer to pay quickly or in one lump sum.
6 Equipment Leasing Versus Purchase
Leasing equipment as opposed to purchasing the equipment outright preserves working capital for other purposes. The lease payments can often be tailored to fit certain budget or revenue flows. At eCapital, we offer quick, simple funding options so your business can have the much-needed access to capital it deserves. We’re here to provide funding when you need it most — and you’ll never have to jump through hoops to get it.
Fast, affordable funding for your business.
No matter your current business size or credit situation, we have financing that will fit your needs.
Use funds to:
- Meet payroll or tax obligations
- Cover operating expenses
- Expand or grow your business
It’s simple, fast, and free to apply. Why not get a free, no-obligation quote?
Contact eCapital today to see how we can help!
Call 888.450.2580 or fill out the form.