Seeking out funding is a big step for any business. Whether it’s a startup looking for their first round capital or a seasoned business looking for a little more cash flow, short-term business loans are a popular option. They allow you to get the funding you need on a short-term basis without giving away half of your business to an outside investor.

What would happen if your largest customer was 30 days late in paying their invoices? Maybe you’re fortunate enough to have enough cash on hand to keep everything running; however, that isn’t the case for most small businesses.

Working with a commercial finance company to fund your business helps you solve problems and provides you with the cash flow needed to seek out new growth opportunities.

In our tenure in the commercial finance industry, we’ve come across two types of business owners:

You’ve decided you want to research the best factoring companies in order to improve cash flow in your business. The internet is a powerful research tool to gather information about any subject, but without some general guidelines it is very easy to get lost in the massive amount of information out there. At this point, if you’re looking for different types of factoring for your accounts receivable, you probably already know the basics about invoice factoring. So let’s turn to some critical points you need to dig into.

It is a simple fact: In order for small businesses to survive, they must have cash. We all know how you get the cash to successfully meet obligations: converting accounts receivables into cash.

When you think about business funding what comes to mind? A loan from the bank? Tapping personal credit cards? Using your own savings? Some kind of specialized cash flow financing?

There are many reasons why it is important to have a stable capital base for operating your business. Stability offers safety in today’s volatile markets. Whether the source of your stable capital is equity investment by the owners/shareholders or whether you have some sort of commercial finance loan, the benefits of knowing you have money available at a moment’s notice gives you the flexibility you need as a business owner. 

I’ve directly or indirectly participated in the financing of over 35 startup companies in the past dozen or so years and have provided cash flow advice to all of the CEOs of these businesses. Currently, there is a lot of focus on business formation and the need for the first $50,000 to $250,000 in seed funding, or angel financing, as it is commonly referred to in the investment world.

Have you found yourself in a pickle and just realized that you need cash today for a business operating expense such as payroll or an inventory purchase?  Or, is there a great deal to be made with a vendor to save your company money, if you are able to pay the vendor in the next week or so?