5 Tips to Help You Find the Best Working Capital Loan Company
A business working capital loan comes in more shapes and sizes that you might think ! We're the first to admit there are no guarantees in business, let alone life, but there are some real world proven methods of achieving cash flow solutions that work. So are you ready to apply for a working capital loan - we've got some solid solutions.
Most of clients are quick to ask about the working capital loan interest rate situation. The reality is that loan rates vary , depending on key factors such as the size of the loan and the overall credit quality and risk parameters.
Strategy 1 - While not optimal you might consider the sale of fixed assets that your company might no longer be using in day to day operations . These would be assets not critical to your business , but in fact might be unproductive in the scheme of things.
Naturally you need to make sure you have bank permission to dispose of assets in case there are security agreements or liens in place. In some cases you might want to consider replacing assets with ones that are cheaper and more productive and less costly to maintain.
Strategy 2 - The Sale Leaseback . This is of course the opposite of buying new assets, You own the asset in question, its free and clear - you just refinance it , typically through a lease financing company . In some cases you might want , or need to get an appraisal to ensure you get proper value for the asset.
Strategy 3 - Inventory financing . That is often a challenge for business owners and financial managers given their bank arrangements often do not cover inventory finance. It's a specialized asset financing and is often part of a non bank asset based lending facility . Asset based lenders like to finance inventory!
Strategy 4 - Other assets . Many businesses often have hidden assets such as tax credits , patents, etc - They can often be monetized for cash flow
Strategy 5 - Monetize your receivables and sales if you don't have bank credit in place . Quite frankly that's our most recommended and utilized finance strategy. You don't take on debt, your cash flow grows with your sales. Using our recommended CONFIDENTIAL RECEIVABLE FINANCE solution you bill and collect your own receivables and gain cash immediately on making the sale. Quite likely your competitors might already be using this type of financing!
Summary : Those are 5 recommended business working capital loan solutions . Are they guaranteed ? Not always. Will one or some of them work for your firm. Most likely yes!
Speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success who can assist you in evaluating options.
