Financial planning is very important for a business especially in view of disruptions that can arise out of nowhere and put a spanner in the works. Let’s assume that you are running a beachside resort complete with all the frills like restaurants, coffee shops, bars, pubs, casinos and a lot more. It’s a hit with customers and your cash box is jingling like never before. Then one day your entire empire is blown away in less than a minute by a huge tidal wave or Tsunami as it is better known that came out of nowhere. Remember that your insurance won’t cover for natural disasters and you will need business funding to rebuild your business. If you had planned for it, and saved enough contingency cash for something similar even if not at this scale, then you are in with a chance to make a comeback. If not, then you have an uphill task.
- Don’t expect much from traditional lenders
Considering the way traditional lenders such as banks and other financial institutions operate, it is going to be very difficult to get them to fund your disaster-hit business. Even if they find your past records impressive, they have several other criteria that will act as a barrier for you to get any business capital loans. One of these is collateral of your fixed assets amounting to the value of the loan they will provide. Even with your biggest assets destroyed if you are prepared to leverage any of your other fixed assets to obtain the loan, then that will be a tough choice.
In such circumstances, what can you do to get small business funding on easier terms and at low cost? Here are some tips that can make it easier for you to get access to such funds.
- Restructure your cash flow
Whether your business has been affected by natural disaster or you are on the path to faster growth, you must be in a position to understand your changing cash cycle. Plan your expenses and procurement better to be able to make more accurate sales forecasts. This will be really helpful for you to obtain alternative business funding on easier terms and lower cost.
- Chase outstanding payments
When you allow unpaid invoices to pile up they tend to become steep mountains that are very difficult to climb. Many businesses have come crashing down trying to chase outstanding receivables when it was already too late. You need to know the threshold where you simply refuse to allow your receivables to pile up. On the flipside, you could leverage such receivables with alternative lending agencies that offer funding on the basis of invoice factoring.
- Keep an eye for new opportunities
Smart businesses are always alive to new opportunities and for that they keep an eye on market trends and how consumers respond to these trends. If you have decent cash flows and need cash to invest in a promising new opportunity, there is Alternative Funding Group to provide you with fast and easy credit.
- Adjust your approach for alternative funding
Contrary to what some folks believe, small US business funding by alternative funding agencies also requires a steady if not strong cash flow statement. It is true that your credit history is not given too much importance by such lenders but your current business cash flows are important for them to figure out your debt repayment abilities. Their decision to approve your loan depends on that.