Small businesses seek funding for a variety of reasons. Oftentimes, however, business owners are unsure of when to secure capital. This can result in missed opportunities, stagnation, or major cash flow issues that require an immediate fix. As an entrepreneur, it’s essential to the success and longevity of your business to be able to identify when you may need additional capital.
Here are 5 clear signs that it’s time for your business to secure funding:
- You Keep Putting Off Growth Plans
Have a vision for the future of your business? Or maybe your business goals would be within reach if only you had enough capital. If so, then you should consider securing growth funding. Don’t sacrifice viable growth opportunities simply because of lack of capital. A small business loan can help you seize the chance to expand to a second location, hire additional staff members, increase your marketing efforts, develop new products or services, or even renovate your current spot.
- You’re Not Financially Prepared in the Event of an Emergency or Unforeseen Expense
Although you may have a solid budget for everyday expenses, are you financially prepared in the event of a natural disaster or sudden equipment failure? If you have no financial cushion for unexpected expenses or emergency situations, your business can quickly suffer. In this case, a business line of credit may be the best choice for your company. A business line of credit is a flexible funding solution that provides you with quick access to cash whenever you need it. Many small businesses set up a line of credit when business is going well in order to have a safety net in the event of hard times. You can use the cash whenever you need it, and you only pay interest on the amount you borrow.
- Cash Flow Struggles are a Regular Occurrence
Are you feeling the strain of lacking enough money to purchase inventory, cover operating expenses, or overcome seasonal sales slumps? Not having enough cash to pay the day-to-day costs of running a business is a warning sign that you should secure funding sooner than later.
Working capital loans can help you cover your short-term financial needs while giving your business a cash infusion to help it grow.
- Your Equipment is Broken or Outdated
Broken or antiquated equipment that isn’t operating well can cause major disruptions to your business and productivity. Having the latest equipment and up-to-date technology will help your business run at maximum efficiency and allow you to better serve your customers. One option that can help you cover the cost is equipment financing. This is a type of loan that can provide you with capital to purchase the equipment your business needs to grow. You can use an equipment loan to purchase anything from office furniture and medical equipment to farm or commercial machinery.
- You Have Money Tied Up in Customer Invoices
Waiting on customers to pay their outstanding invoices is extremely stressful. You still have bills to pay and payroll to cover although your working capital is tied up in unpaid invoices. This inhibits your ability to accept and begin new projects and puts a major strain on your cash flow. If you find that your business is frequently struggling to collect money owed to you in a timely manner, securing business financing may help alleviate some of the financial burden, allowing you some wiggle room to bridge the gap while you’re waiting on payment.
Is Your Business Suffering Because You Don’t Have Enough Cash?
ViewRidge Funding can get you the working capital or equipment financing that your business needs— providing additional cash flow for nearly every situation. Apply today and get approved in hours. There’s no cost or obligation and our single page application takes only minutes.