The Best Business Working Capital Loan to More Cash Flow
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A SME working capital loan ( SME = small to medium enterprise ) can easily help overcome the cash flow challenges your business faces . It is really an extension of the merchant cash advance concept that originated with the financing of retail type businesses.
Let's take a look at the cost and type of financing we're talking about . Your firm's ability to maintain the proper level of cash is no doubt a continual challenge . We read everyday in the business news about the reality of an upcoming recession .. or not ... but to our clients it always comes back to running and growing their business.
So how does the short term working capital loan in fact address your finance needs? It's an alternative form of financing that focuses on your sales and the funds that travel through your bank account on an ongoing basis. Rates are higher than bank financing, typically in the 1-1.5% per month range but the bottom line is that your loan is paid from ongoing sales. This is not long term loan financing!
So is this financing in fact ' expensive '. We'll let you decide because the new found cash can be used to generate more sales, negotiate better with suppliers via effective purchasing, as well as maintaining positive relationships with suppliers and employees. They both like to be paid!
Our clients typically use these funds to grow their sales, reduce payables, etc. It's important not to confuse the benefits of short term working capital loans with other forms of cash flow financing - these include a/r financing, inventory finance, tax credit financing, etc . And let's not forget about term loans of a longer nature.
Interested? Hopefully not confused!! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with your business finance needs.
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