Even the most seasoned entrepreneur can experience cash flow problems. Small business owners often rely on working capital financing to help bridge the gap when there is a shortfall. Whether you need to meet payroll or purchase inventory, working capital financing will help reduce the pressure when your business hits a rough patch.
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 business owners to meet their short-term obligations and invest in long-term growth.
Here are some great ways to use working capital financing to give your small business a big boost.
Manage cash flow.
Many successful small business owners struggle to keep money in the bank. Working capital financing will help you cover crucial operating expenses, from paying employees to paying your lease or mortgage, during times when your business experiences a cash flow crunch.
Stock up on inventory.
Working capital financing can be used to restock your inventory, purchase new products, or buy additional inventory to fill future orders. Some companies rely on working capital loans to take advantage of bulk pricing or a special deal on inventory that requires a substantial upfront payment.
Cover seasonal shortfalls.
Seasonal small businesses typically experience slowdowns when operating capital is tight. If the fall signals the end of your busy season, working capital financing is a valuable tool for managing your cash flow during the months when you need to cover ongoing expenses like rent, insurance, taxes, utilities, and salaries.
Hire additional help.
Providing stellar customer service is one of the keys to steady growth. If the holiday season is busy for your business, a working capital loan can help you hire enough temporary employees to handle the rush and keep your customers happy.
Update your equipment.
Small businesses often postpone purchasing new equipment, even when they know it will improve efficiency and profitability. If upgrading your equipment 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.
Launch a holiday marketing campaign.
According to the National Retail Federation, 41 percent of shoppers started their holiday shopping in October or earlier last year. Launching an “early bird” marketing campaign now will reconnect your business with current customers and attract new business. A working capital loan lets you to capitalize on return-on-investment opportunities such as refreshing your online presence, testing a new advertising channel, or sponsoring a local holiday fundraising initiative.
Tackle a big project.
When you need more space to attract more profits or want to remodel to provide a better customer experience, a working capital loan can fund projects that will support business growth. Use it to access quick cash now to repave your parking lot, add indoor seating for your restaurant, or upgrade your warehouse racking system before the onset of winter weather.
Pay down debt.
Working capital financing is an option for addressing pesky payables, paying down high-interest loans or credit card debt, or getting current on unpaid taxes. If you have fallen behind with an important vendor, you can use stabilized cash to bring your account up to date so that you’re in a better position to take advantage of pricing discounts or request additional credit.
Capitalize on opportunities.
If you’ve found the perfect location to expand your operation or a hot deal on hardware or software to boost your prouctivity, working capital financing gives you the freedom to jump on act-now opportunities to improve or increase your business.
Cover unexpected expenses.
Savvy small business owners know to expect the unexpected. Problems ranging from equipment breakdowns to a sudden shift in the market can leave you strapped for cash. Because working capital loans can be used for any business expense, they can mean the difference between keeping your business running or closing your doors.
Companies large and small use working capital financing to grow their businesses in countless ways. Summit Financial Resources sees the infinite possibilities in your business. You can count on us to treat you with the care of a customer and the vested interest of a partner, dedicated to helping you seize immediate opportunities and flourish for years to come.
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.