low doc personal loans

How to Create a Positive Cash Flow Using Low Doc Personal Loans

Learn how to use low doc personal loans to arrange working capital, extra funds to buy property or equipment and resolve the issue of not having updated financials to service a new loan.

Here are some strategies that you can use to create a positive cash flow for your business using low doc personal loans:

Increase the number of products or items to be sold.

If you want to increase your profits, then increase your production. The same thing applies to those in the service business. You can use the proceeds of the low doc personal loan to finance the following:

  • direct materials
  • direct labor
  • manufacturing overhead
  • and other costs occurring in your factory or the costs of preparation and delivery of service

Increase the price of items.

Maybe you’re considering the price point not only because you are earning less than you think you deserve, but because you want your business to grow.

If you do, then maximise your profit by increasing the price of your products. But, make sure that you add something to make your product worthy of a few cents increase. You can add some new features or change labels, and make a marketing strategy that would definitely grab your customers’ attention. By charging more, your customers will also pay attention to your product or services. They will take time to review your brand and check if they will not waste money in doing business with you.

Reduce expenses.

You might say, ‘How can I save money when I am actually getting a new loan?” Well, think about maxing out your credit card debt and miss payments until you have recovered financially. You’ll be paying more than what you have bargained for! On the other hand, personal loan is a lot cheaper than a credit card debt. With a personal loan you can bolster your business’s bottom line not only by increasing sales and cutting unnecessary expenses, but by choosing any of the cheap alternatives:

Outsourcing or contracting services.

Contract highly qualified workers who can give you the same quality of output at a lower price than a local hire. Retain only a few employees to help you out with your daily operations. This way, you don’t have to worry about maintaining a big office or factory to accommodate numerous employees. It is cost-effective too in terms of human resources management and labor laws.


Wrangle better deals from your suppliers.

Negotiate prices and get discounts by paying for the supplies in advance or giving higher initial fees. Many suppliers would rather give in to your demands than lose regular customers. Use your loan as leverage and try to find another supplier with better terms. If your current supplier can beat the new one-then you’ll definitely enjoy a good cut from the current prices. If it won’t, you can switch to a new one which can supply you with the same quality and quantity of materials/products.

End the indefinite payment stream.

Have you been paying for equipment for years, in installment basis? It’s time to pay it in cash to avoid escalating interests especially when you miss the due dates. You can also use the money from the low doc loan to purchase rather than rent tools or equipment that you have been using on a daily basis for your business operations. It’s better to own them than to keep on paying for something which belongs to another person.

Create new system to enable your customers to pay you sooner.

Is your business limited in the ways it accepts payments from its customers? If so, it is likely that having delayed payments or even missed sales are nothing new to you. The solution is to make it easy for your customers to pay the way they want.

To do this, you can buy new apps to get your clients to pay their invoices promptly. Or, you update your company’s payment processing system so you can accept BPAY, credit card payments, PayPal and even mobile payments from your customers. Remember that many customers don’t like to purchase using cash and checks. It won’t cost much. But, having a low doc loan handy can make the process smoother than not having one.

Bottom Line

A business has its ups and downs but the best way to prepare for it is to make smart financial management decisions. One strategy that stands out among other management options is getting the right financing that will serve as a buffer in times of losses, and can act as an anchor when you’re starting up or growing your business.

Contact ALC Commercial today to learn more about the low doc personal loans for your business financing needs.

For more information on business loans, commercial finance, debt consolidation, bad credit business loans and low-doc business loans talk to our experienced and understanding loan specialists to see how our business loans can support your business goals.

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