A great deal of small businesses experience growing pains at some point. When this occurs, cash flow pressures can make it difficult to invest working capital back into your business for growth. Even with a steady demand for your products or services, high operational costs, and other expenses have you searching for a creative way to get business financing.
The Top Choices for Business Growth Financing
Whether you need cash to help with business growth or want a cash cushion during a rough patch, finding the right type of financing is critical. Big companies may have multiple options when they want to capitalize growth. Small businesses… not so much. So, how can you tell which funding option is best? Let’s look into some innovative ways to use financial leverage to fund your company’s growth.
1 Flexible Funding – Working Capital Advances
A Working Capital Advance is a flexible type of funding that’s not a loan and can be used for business expansion, hiring more employees, new equipment, additional locations, and many other growth-related needs. Working Capital Advances provide a lump sum of money that is repaid as a percent of your future monthly revenues. The month-to-month income your small business yields will determine the amount of the advance.
Usually, small businesses must be in business for a certain period of time and generate a minimum amount of revenue per month in order to qualify. The approval process is quick, typically taking only a few hours and providing funding within days. If your small business has a dependable monthly revenue stream, this finance option may be ideal for you.
2 Fast Cash – Invoice Factoring
What is invoice factoring? To put it plainly, invoice factoring is a financing solution that lets you get paid fast cash for your unpaid invoices by selling them to a factoring company. This modern financing alternative for small businesses turns your current accounts receivables into immediate cash. The factoring company, such as eCapital, pays the amount due to you in as little as 24 hours, minus a small percentage. While the factoring company handles all duties related to accounts receivables, you can pour your energies into operations and other top priorities. What’s more, unlike credit cards or bank loans, factoring doesn’t impact your credit rating.
When you don’t have time to wait months for a bank loan, a factoring company can get you going quickly. You can be set up and funded within a few days.
From covering payroll to new expenses, invoice factors can increase your capital, thereby increasing your prospects for fast growth. It’s not a loan, it’s your hard-earned money made available early. To sum it up, factoring is a smart way to grow your business without going into debt.
3 Alternative Funding Solutions
Banks and similar financial organizations habitually get anxious about lending to smaller companies without extensive past histories. For small businesses that can’t or don’t wish to go the traditional bank route, online lending is another possibility. Online lenders have the advantage of speed: an application takes less than an hour to complete, and a decision and the related funds can be supplied within days. In comparison, the traditional loan process can take weeks, or even months, to complete.
If you’re looking for fast funding for your business, eCaptial can help. No matter your business growth requirements, current business size or credit situation; we have a form of financing that will fit your needs.
Get your free quote by calling 888.450.2580 or by filling out the form. It takes just a few minutes and you can receive funding within days.