A year ago our company had a very good outlook. However, recently as of lately we have not been able to do a lot of business and even though we have a good number of long-term clients, growth has come to a halt and we’re barely getting by at this point. We think it is because we simply don’t have the budget to focus solely on advertising and marketing as much as we should, so some extra cash might help. Unfortunately, our credit is such that any loan we get would just put us further into debt unless we made absolutely perfect decisions with the funds. Is there a way for us to obtain the financing needed to give our business a boost so we can start making a profit again?
This is a very common problem amongst small-to-medium-sized enterprises (SMEs). In fact, lack of cash flow is the number one reason businesses are unable to expand and escape debt. Taking out a loan to repay debts may seem counterintuitive to you at this point, but look at it this way – if you had a significant sum of money to repay all of your outstanding debts with, and maybe invest as well, would your company not be in a better situation, despite having created a new long-term debt? This is the logic we try to help people see when recommending asset financing, invoice discounting, and factoring as recovery solutions.
Does your company have assets you no longer need that can be value and sold? If so, selling a small piece of your business may give you the funds needed to eliminate debt. If selling assets doesn’t sound appealing to you, consider using them as collateral to obtain a secured loan. This can be a particularly good option if you’re in need of funds quickly but have poor credit.
You mentioned that your company has a few good long-term clients. Do they owe you any money? Do you have contracts that require them to make payments in the future? If so, you may be able to leverage such invoices and accounts receivables to acquire a cash advance in the form of a line of credit. We can help you initiate a invoice discounting or factoring process, in which a lender will provide a line of credit that is equal to up to 85% of the money that is owed to your company.
If you need a quick burst of cash to get your company on the road to turning a profit, talk to the insolvency specialists at Real Business Rescue. We can help determine the best way to come up with operating capital without putting further stress on your monthly repayments. If funding and financing is the best course of action, we can recommend which type of loan is best suited to your needs. There is no fee involved for our expert advice so call today for a free consultation with an insolvency specialist.
25th April 2019
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