We hear from many small to mid-sized businesses that are struggling with getting control of their cash flow. Ensuring that your business has money in the bank to cover essential expenses such as payroll, accounts payable, utilities, rent/mortgage and other obligations is vital to your success.

There can be many reasons why a business would find themselves in this position including their client’s taking 30-60+ days to pay, not having access to additional working capital through a loan to facilitate growth, funds being tied up in equipment purchases or the business being in a time of transition. By partnering with a reliable and experienced financial partner, your business can find ways to get control of cash flow and relieve the burden of worrying about how you will cover those vital ongoing expenses. Here are a few options that could help:

Account Receivable Factoring
For businesses that are struggling with cash flow due to slow paying customers or rapid growth Account Receivable Factoring can be a good solution.  It allows you to receive payment for your invoices immediately instead of waiting 30, 60 or 90 days for your customers to pay. Factoring Lines are designed to speed up your company’s cash flow and provide you with an improved source of ongoing working capital.

Unbilled Account Receivable
Unbilled Account Receivable can cause a real cash flow challenge for some businesses.  Not only do they have the normal overhead related to generating the revenue but contractually they are not allowed to invoice until the end of the month or some other determined time frame.  This delays the payment of the receivable and creates additional strain on cash flow.  Identifying a lender that will provide borrowing eligibility on Earned but Unbilled Accounts Receivable can be a key step to gaining control of your cash flow.

Asset Based Line of Credit
Get easy access to working capital to help control your cash flow by utilizing your business assets (accounts receivable, inventory and equipment) as collateral for a line of credit. By determining the value of your assets and including them in a borrowing base, the right financial partner can help you leverage your assets and provide you with easy access to much-needed working capital. 

Machinery & Equipment Term Loans
An often-untapped option to help with cash flow is to use your companies existing machinery and equipment. There are a few ways to do this. One option is to re-structure your current term loan to help free up cash each month. Another option is to refinance or borrow against your existing machinery and equipment to improve your cash flow or acquire additional equipment.

    

While there are times for many businesses when it seems that getting control of our cash flow might be out of reach, with the right financial partner you can work to come up with a solution that will work for your business. Whether it is through using your unpaid invoices, assets or machinery and equipment it is likely that your business has untapped assets that could help.