FINANCING SOLUTIONS FOR UNEXPECTED EVENTS

CONFIDENTLY NAVIGATE THE UNPREDICTABLE

Our aim is to ensure you are financially equipped to handle any situation that comes your way. Talk to an eCapital expert for fast, flexible financing solutions to restore your business’ working capital in under 48 hours.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

Let’s Talk

See how we can help your business

    By opting-in and submitting this form you consent to receive marketing email and text messages (e.g. promotions, product information, industry insights, etc.) from eCapital. See our Privacy Policy for further information.
  • This field is for validation purposes and should be left unchanged.

PREPARE YOUR BUSINESS FOR THE UNEXPECTED

Unexpected expenses can derail any business’ best-laid plans and can strike any business, anywhere, at any moment.

A promising opportunity may emerge, economic or market conditions may fluctuate, or a sudden legal issue may arise. Regardless of the situation, positive or negative, your financial readiness may be caught off guard.

Trust eCapital to be your catalyst for success when your business faces unexpected situations. We’re your starting point for immediate, short-term financing.

44

of small businesses have less than 3 month's worth of cash reserves

69

of business owners say they couldn't access funding if they needed additional capital

LEVERAGE OUR FAST & FLEXIBLE SOLUTIONS

Every business has its challenges. Successful business leaders focus on what they can control: their strategy, growth plans, efficiency and customer satisfaction.

But even with all the right pieces in place, unexpected events can happen.

  • Are you dealing with unexpected or urgent equipment
    maintenance needs?
  • Is there a chance for you to undertake an exceptionally sizable
    project or order?
  • Do you have plans to establish a new branch or venture into a new business area that necessitates a substantial initial investment?
  • Has a large customer defaulted on their debt to you?
  • Has your business experienced a sudden boost in clients?

Any of these events could end up a missed opportunity or even worse, cause harm to your business. The solution is a fast and flexible bridging loan, available when you need it, on terms that work for you.

HOW PREPARED IS YOUR BUSINESS FOR
UNEXPECTED EVENTS?

Cash on hand consists of finances set aside expressly for an unexpected use—this could be rainy day funds for an emergency or money to put toward unanticipated investment or expansion opportunities.

Cash on hand is just an expression; it’s a term for how much of a cash buffer your business has access to. You can approximate your business’ liquidity using formulas and financial ratios such as the current ratio.

Paying attention to the current ratio allows you to handle issues quickly as they arise.

NOTE

The current ratio shows how many times your business’ current or liquid assets can cover its short-term debt or unexpected events.

A current ratio of 1.2 to 1 or higher generally provides a strong enough cushion to weather unexpected events. A current ratio that is lower than the industry average may indicate a higher risk of distress or default.

In times of economic uncertainty, most businesses prefer a higher current ratio of 2 to 1 or 3 to 1.

Leveraging eCapital’s creative financing solutions will allow you to quickly improve your current ratio and better prepare your business for unexpected events.

WE OFFER FINANCIAL SOLUTIONS FOR ALL TYPES OF BUSINESSES

We work with a wide array of industries. Our clients are all business-to-business entities, meaning they invoice other companies (not consumers) for products and services provided.

TRANSPORTATION & LOGISTICS

MANUFACTURING

STAFFING

FOOD & BEVERAGE

SERVICE

CONSUMER PACKAGED GOODS

HEALTH AND BEAUTY

CONSULTING

OILFIELD SERVICES

WHOLESALE & DISTRIBUTION

APPAREL

TELCOM/WIRELESS

WHY CHOOSE US AS YOUR FINANCIAL PARTNER?

eCapital is an award-winning, industry-leader in the alternative financing space. Here are a few reasons why businesses choose eCapital as their alternative financing partner:

24/7 Access To Your Cash

Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.

Fair & Affordable Rates

Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.

Facilities Up To $50 Million

We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.

Seamless Transition

We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.

No Hidden Fees

We believe in transparency in all we do. That means no surprises when it comes to our agreements.

Expert Tips & Advice

Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.

DON’T JUST TAKE OUR WORD FOR IT

For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!

LEARN MORE ABOUT
HANDLING UNEXPECTED EVENTS

Survive and Thrive: How to Rescue Your Business from Insolvency and Grow

Despite last year's surprising GDP growth, business bankruptcies surged ove...
Read More

Reviving Success: How an Asset-Based Loan Rescued a Struggling Portfolio Company

In the world of private equity, investments often come with the promise of ...
Read More

Overcoming Financial Distress With Alternative Financing

It’s been nearly four years since the onset of the COVID-19 pandemic. As ...
Read More

FREQUENTLY ASKED QUESTIONS

How do you increase your cash on hand?

Increasing cash on hand can be achieved through several strategies. Firstly, you can improve your revenue by increasing sales, raising prices, or introducing new products or services. Secondly, you can reduce expenses by cutting non-essential costs, negotiating better deals with suppliers, or improving operational efficiency. Additionally, you can speed up cash inflow by improving your invoicing and collection processes, offering incentives for early payments, or using factoring services. Lastly, consider securing financing like a line of credit or a loan, or selling non-essential assets.

What is the average amount of cash on hand for businesses?

The average amount of cash on hand for businesses can vary widely based on several factors including the size of the business, the industry in which it operates, the business’s stage of growth, and current economic conditions.

As a general rule, many businesses aim to keep enough cash on hand to cover at least three to six months’ worth of operating expenses. This is considered a safe amount that allows the business to continue operations even in the event of an unexpected downturn or expense.

However, startups or companies in growth stages might maintain more cash to fund new investments, whereas mature companies might hold less as they could have steady cash flows. In some industries like technology or biotech, companies might have even larger cash reserves due to the high levels of uncertainty and investment requirements.

How do you calculate your available cash from a cash flow statement?

The cash flow statement provides a detailed summary of how a company’s cash position changes over a specified period due to its operating, investing, and financing activities. To calculate the available cash at the end of a given period from a cash flow statement, follow these steps:

  1. Identify the starting cash balance: This is usually found at the top of the cash flow statement and represents the cash balance at the beginning of the period.
  2. Calculate net cash from operating activities: This section includes cash inflows and outflows related to the company’s primary business operations like selling goods, providing services, paying salaries, and other day-to-day expenses.
  3. Calculate net cash from investing activities: This section includes cash flows associated with the purchase and sale of long-term assets like property, plant, and equipment, and investments in other businesses.
  4. Calculate net cash from financing activities: This section includes cash flows from issuing or repaying debt, issuing or repurchasing equity, and paying dividends.
  5. Add/Subtract the net cash from each of these sections (operating, investing, financing) to the starting cash balance.

The result will be the ending cash balance, which is the available cash at the end of the period.

So, the formula would look like this:

Ending Cash Balance (Available Cash) = Starting Cash Balance + Net Cash from Operating Activities + Net Cash from Investing Activities + Net Cash from Financing Activities

Remember, while this calculation gives you the cash available at the end of the period, it’s also essential to understand the nature of these cash flows. Some cash inflows or outflows may be one-time events or might not be sustainable in the long term.

What is cash on hand?

“Cash on hand” refers to the amount of money that a company has readily available at any given moment. This can include physical cash stored in a safe or a cash register, as well as the funds available in bank accounts, like checking accounts or highly liquid savings accounts. It represents the most liquid form of assets a company possesses and can be used immediately to meet any short-term obligations or unexpected costs.

In a broader sense, “cash on hand” also refers to a company’s ability to cover its current liabilities.

Let's Talk

Get started today.