Every day, businesses large and small face the challenge of dealing with low cash flow. It can impact all areas of your business, from paying your employees to meeting your own financial demands from creditors. The good news is that you can build stronger cash flow and alleviate the pressure on your company.
One way you can ensure you have enough cash for daily operations is to take out an operating capital loan. You’ll find these options are available from a number of different sources, but they are not all the same.
For instance, you can apply for such a loan through a conventional bank, and you’ll pay between 6 and 10% interest over the course of three to seven years. Your funds will be available to you within two weeks to a month. The Small Business Administration (SBA) also offers similar loans, with terms that are almost identical, except that your funds may be available within 10 days, rather than two weeks.
An alternative lender can offer help with cash flow by providing a loan at between 6% and 25% interest depending on your credit and the lender in question. You’ll have between a year and five years to repay the loan, and your cash will be available within five to seven days. Finally, you could obtain a cash advance through factoring, with a rate as low as 1.16%, repayment within three to 24 months, and your funding available in 24 to 72 hours.
Of course, there is also the option to take out an asset-based loan. In this scenario, your business would use an asset like real estate to back the loan for a lower interest rate. Loan terms are similar to those with conventional lenders.
Not sure which is the best option to meet your cash flow needs? Get in touch with us at Commercial Capital Funding to learn more.