It’s a basic fact of business that your operation needs continuous income to remain operational. Every day a business is open, more money is spent keeping it open – and that can be a challenge with the coronavirus epidemic still spreading, and economic uncertainty causing a chilling effect on purchases.
Right now, many small- and medium-sized businesses are hurting for cash. They might have difficulty making payroll, or paying their mortgage, or even paying their bills. This could even be compounded by having outstanding invoices going unpaid, due to their customers/clients similarly having cashflow issues.
If this sounds familiar, and you need a fast business loan, read on to learn about possible solutions.
How Much Working Capital Do You Need?
Before looking for loans or other funding solutions, it’s a good idea to look at your historical financial data and estimate how much you will need. You should have a good idea what your business overhead is, and what outstanding debts you owe. You may also have a good idea of what your budget shortfall is, and how long it’s likely to last.
These should all be factored into your financial calculations. It’s best to seek funding with a clear idea of the amount you need, backed up by hard numbers.
What Loan Options Are Available?
Generally speaking, there are two types of business loans available to SMBs – short-term and long-term.
Short-term loans are intended to be repaid in less than a year. They’re generally for smaller amounts and often intended to cover everyday expenses or minor repairs. They may not require much collateral; however, high-interest rates can be an issue.
Long-term loans are for larger amounts and will be repaid over a longer period of time. They typically pay for major investments into a business. However, they require collateral, and your credit history will have a huge impact on your repayment terms – or whether you get the loan at all.
The Alternative: Invoice Factoring
If you need a fast business loan, perhaps the solution isn’t a loan at all – it could be invoice factoring. If you have outstanding unpaid invoices, loan factoring companies will buy those invoices outright – usually at around 80% of face value – and take ownership of them.
You don’t have to waste money on collections. Your invoices simply get paid, and then you have the liquid funds you need.
Camel Financial can keep your business afloat, without the need for a loan! Contact us today.