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They say money makes the world go ’round. And for small business owners, sometimes it’s fast cash that makes their world go ’round.
If you don’t have money, you can’t produce products and services for your customers. If you don’t have something to sell, you don’t have a way of producing revenue. And if you aren’t producing revenue, you’ll eventually have to close up shop. There are very few exceptions to this law.
But it’s also true that many small businesses are low on cash. When you look at the top reasons for small business failure, 82 percent of businesses cite poor cash flow management skills. And 79 percent also point to the fact that they started out with too little money.
If you find yourself in need of a quick infusion of cash, it’s imperative that you make a smart, calculated decision. In doing so, you’ll stand a better chance of keeping your business afloat without compromising the integrity and future stability of your company.
5 Ways to Find Fast Cash
It’s one thing for a startup to find money to get things off the ground. You have time and leeway for making mistakes. When you do make mistakes, they can typically be solved with few negative ramifications. It’s when your business scales up and experiences rapid growth that access to cash often becomes problematic. And the pressure to infuse it into your business can become unbearable.
If you’re looking for fast cash, you have limited options. Let’s explore a few of them to give you an idea of where you can turn.
1. Personal Installment Loan
If your business has struggled up to this point, you may find it difficult to obtain the financing you need from traditional banks and lenders. They’re going to judge you based on a defined set of metrics. You will be judged upon any signs of friction or failure in your business. But this doesn’t have to represent the end of the road.
With a personal installment loan from an online lender like RISE, you can get quick access to loans ranging from $500 to $5,000. Best of all, it’s your personal credit score that determines your worthiness. Therefore, even struggling businesses won’t be disqualified from receiving cash.
2. Line of Credit Loan
One of the best and most useful types of financing is a line of credit loan. The beauty of this loan is that your business is able to get approved for a certain amount of cash over a specific period of time (generally 12 months). If you need the money over this time, you’re able to withdraw it and put it to use. If you decide that you don’t need it, then you can just leave it where it is and avoid ever paying interest on it.
3. Friends and Family
Do you have friends and/or family members who would be willing to personally loan you a sum of money? Whether it’s a parent, grandparent, sibling, close friend, or colleague, a personal loan can give you access to fast cash. What’s more, you won’t have to jump through mounds of paperwork and endure complicated approval processes. However, you have to be sure that you’ll able to repay the loan. Otherwise, hard feelings could ruin your relationships.
4. Receivable Financing
According to Investopedia, “Accounts-receivable financing is a type of asset-financing arrangement in which a company uses its receivables—outstanding invoices or money owed by customers—to receive financing. The company receives an amount that is equal to a reduced value of the receivables pledged. The receivables’ age largely impacts the amount of financing the company receives.”
If you have slow-paying clients who are putting a strain on your cash flow, receivable financing could help you keep things moving in a positive direction.
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Do you have a particularly emotional story? Or are your products and services unique enough to grab the attention of the masses? Crowdfunding may be a viable option for attracting a large sum of money.
Feeding the Beast
As an entrepreneur and business owner, you have to walk a fine line between giving your business the cash it needs to thrive and avoiding the temptation to become too bloated. Lean growth needs to be the goal. Otherwise, your pursuit of scaling up will ultimately be your demise.