Working capital is the day-to-day driver of every small business. When you have enough cash on hand, you can hire more, produce more, take on more jobs, and pay less for supplies.
Summit Financial Resources offers working capital loans for small to medium-sized businesses that involve using your accounts receivable and other assets as collateral. We can mix and match from a variety of product options to suit your needs, including invoice factoring, asset-based lending, inventory lending, and equipment financing.
Small business owners use working capital financing to grow their businesses in countless ways, from marketing campaigns to purchasing inventory to hiring new employees. To celebrate Valentine’s Day, we’d like to share 14 ways you can use working capital financing to show your small business some love:
1 – Manage Cash Flow
Whether you need to meet payroll, keep the utilities running, or pay your lease or mortgage, working capital financing will help cover crucial operating expenses during times when your business experiences a cash flow crunch.
2 – Bridge Payment Delays
In many industries, delays in receiving cash for your product or service are fairly common. Working capital funds can help you bridge the gap when clients are late in paying their accounts receivables.
3 – Purchase Inventory
Working capital funding can be used to restock your inventory, purchase new products to sell in your business, or help buy additional inventory to fill future orders. Some companies rely on working capital loans to take advantage of bulk pricing or a large sale on inventory where a substantial upfront payment is needed in order to take advantage of special pricing.
4 – Update Equipment
What do you do if you’re offered a great deal on new equipment that will have long-term benefits for your business, but don’t have the cash to pay for it? Working capital funding can provide the funds to cover the cost without impacting your current cash flow.
5 – Pay Seasonal Expenses
If you are in a seasonal industry, restocking inventory and hiring temporary employees before the busy season can be difficult. Working capital loans are ideal for covering these seasonal expenses as well as boosting your preseason marketing to bring in more revenue.
6 – Cover Seasonal Shortfalls
Seasonal small businesses experience slowdowns when operating capital tends to be tight. Business financing is a valuable tool for managing your cash flow during the off-season, allowing you to cover ongoing expenses like rent, insurance, taxes, utilities, and salaries.
7 – Launch a Marketing Campaign
Businesses looking to attract new clients, refresh their brand, or increase their online presence can use working capital funding to launch a new marketing campaign or expand an existing one. Advertising, event sponsorship, direct marketing campaigns, signage, and other return-on-investment opportunities are common uses of working capital loans.
8 – Hiring and Employee Expenses
Cash from working capital loans can be used for human resources expenses, such as hiring bonuses, employee events, and career fairs.
9 – Expansions or Renovations
Whether your business needs more room to attract more profits or you want to remodel to provide a better customer experience, consider a working capital loan to fund your growth.
10 – Opportunities for Growth
As a small business owner, you never know when opportunities will occur. When you find the perfect location to expand your operation, get an offer to staff up a new company, or are suddenly approached about buying out a competitor, access to quick funding will ensure that you are in a position to jump on the opportunity before it slips away.
11 – Taxes
Working capital funding is an option for bridging your cash flow during tax season or funding property tax payments.
12 – Unexpected Expenses
No matter how well small business owners plan, unforeseen problems such as equipment troubles, structural damage from fires or floods, or a sudden shift in the market can leave them strapped for cash. Because working capital loans can be used for any business expense, they can mean the difference between keeping your business up and running or having to shut down.
13 – Leverage Expertise
Business owners use working capital funding to access advice and training from outside professionals. This can range from hiring a consultant to help implement a new sales program to working with a software expert to speed up your business processes and lower expenses.
14 – Improve Creditworthiness
Some small business owners use their working capital loans strategically to establish good credit by proving they can manage debt well. If you work with a lender who shares information about the loan with the credit reporting bureaus and this information is positive, it can help to boost your credit score.
Whether you are small or huge, local or global, Summit Financial Resources can provide the working capital financing you need to help your business reach its full potential.
Working Capital Financing is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.