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• By Jill Wyatt
• Jan 28, 2020
• 3 mins read

What is the Right Business Financing if You Have Cash Flow Problems?

Steady cash flow is a key concern for all businesses. Financing for cash flow can smooth over the peaks and valleys in this key element of day-to-day business. But it can be tough to find the right short-term funding that’s going to address your current cash flow needs. Let’s look at how uneven cash flow can harm your business, and ways to secure effective funding to overcome cash flow challenges.

How Cash Flow Problems Can Harm Your Business

Many businesses can run into cash flow issues. Common causes can include:

Seasonal Cycles

Your business offers a product or service that is often used during one part of the year but not as frequently during others. Businesses with this model are very vulnerable to a slow week or month of sales.

Uneven Sales

You can’t be sure that customers will regularly make purchases on a consistent basis. Even mature companies can run into unexpected dips in sales. For newer and smaller businesses, uneven sales can be a major issue.

Delays in Payment

Payment delays in the business-to-business space are common. Depending on the industry, weeks or months may go by before you can expect a customer to pay an invoice. You know the money will eventually come in, but the wait can create a variety of problems.

Having cash available means your company can address new concerns and grow operations. Without steady cash flow, your company will likely have issues in these areas, among many others:

• Planning ahead: A lack of cash makes it harder to follow through on things that save money in the long run, like proactive maintenance or hiring new staff.
• Effective marketing: The Houston Chronicle said marketing budgets are often among the first cut when cash flow issues arise. This can cause more cash flow problems in the future as awareness of your business lowers.
• Acting on opportunities: Expanding your business or moving into a related line of work simply isn’t possible without strong cash flow.

Finding Effective Financing for Cash Flow

There are many strategies you can use to keep your cash flow steady. Acting on this advice can make your business more resilient to cash flow issues. But this guidance may not grant you the immediate flexibility to respond to short-term concerns and stabilize your business right now.

Financing for cash flow helps to keep your business operating normally. These additional funds mean you can pay your bills, market your offerings, and handle any emergencies that may come up. Perhaps most importantly, you can get some financial flexibility to grow your company.

However, it’s often hard for small businesses to align with the lending rules set by banks. Other cash flow options, like credit cards and lines of credit, can involve long wait periods that don’t help to manage short-term needs.

QuickBridge offers small business loans that can address cash flow challenges. We offer solutions tailored to your company’s unique needs. Whether it’s one specific issue or opportunity, or a general sense of security when managing normal expenses, financing for cash flow creates a solid foundation of funds. This makes it easier to use longer-term strategies for improving cash flow and avoiding such problems in the future.

We want to help you address your cash flow concerns quickly. Find out more about how we can help you effectively manage cash flow problems: get in touch with us today.