Spring is a busy time of year for many small businesses. The shift in seasons often prompts business owners to take stock of what’s working, what’s not, and what they can invest in to take business to the next level. This makes spring the ideal time to take advantage of the benefits of working capital financing.
Whether you need an infusion of cash to purchase new equipment, scale up operations, or meet a sudden increase in market demand, a working capital loan provides a ready and reliable source of funds to help your business evolve. 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.
Working capital loans can be used for any business expense, allowing owners to meet their short-term obligations and invest in long-term growth. Here are just a few of the countless ways you can use this flexible type of financing to breathe new life into your business this spring.
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Working capital financing is an option for repaying high-interest loans or credit card debt without tapping existing funds. If you’ve taken out a merchant cash advance with a high interest rate, you can consolidate your debt, lower your interest rate, and get out of debt quickly without impacting your cash flow. You can also use stabilized cash to bring vendor accounts up to date so you’re in a better position to take advantage of pricing discounts or request additional credit.
Purchase new equipment.
Buying new equipment is often a costly proposition, which is why small businesses often postpone making purchases despite knowing it will improve efficiency and profitability. If upgrading your equipment this spring will have long-term benefits for your business but you don’t have the cash to pay for it, working capital financing can provide the funds to cover the cost without impacting your current cash flow.
Keep cash flow consistent.
If you’ve been struggling to maintain a steady cash flow, a working capital loan will help you cover crucial operating expenses, especially if the warmer months are slow for your business. You will have enough cash on hand to stay on top of bills, payroll, and vendor payments as well as take advantage of unexpected opportunities during times when your business experiences a cash flow crunch.
Capitalize on opportunities.
You’ve found the perfect location to expand your operation, discovered a hot new product to boost sales, or have the chance to acquire a key competitor. However, applying existing capital toward such a large expense would jeopardize your ability to cover operating expenses. Working capital financing gives you the freedom to jump on act-now opportunities to improve or increase your business, knowing you have the money needed to satisfy monthly obligations.
Cover unexpected expenses.
Business involves taking risks, which can sometimes result in unplanned expenses. A sudden spike in business or downturn in the market can leave you strapped for cash. A working capital loan offers quick access to cash and can be used for any business expense, so you can keep your business running even when the unexpected happens.
Working capital funding is an option for keeping your cash flow constant and covering ongoing expenses while paying property taxes or reducing your tax debts.
Hire extra help.
If springtime is busy for your small business, one of the best ways to provide great customer service is to ensure you have enough staff to handle the rush. Consider a working capital loan to adjust for larger payroll, hire additional employees, and cover the costs of training so you can keep your customers happy.
Launch a spring marketing campaign.
Whether you are looking to attract new customers or entice existing customers to engage, spring is the perfect time to refresh your brand and expand your marketing efforts. Online advertising, event sponsorships, direct marketing campaigns, signage, and other return-on-investment opportunities are common uses of working capital loans.
Expand or remodel.
When the weather warms up, small business owners often look to expand, remodel, or relocate. Plans can be as simple as repaving your parking lot or as complex as remodeling your offices or buying a larger warehouse. With a working capital loan, you can cover the expense required to invest in business growth without negatively impacting your cash flow
Business owners often 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.
When you have enough cash on hand, you can hire more, produce more, and grow faster. Working capital loans provide small business owners with the freedom to seize opportunities and the peace of mind of knowing they can weather the inevitable cycle of ups and downs.
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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.