Bridging your Business’ Cash Flow
While every business should carry a cushion with their cash reserves, today’s economy has made that less than feasible. When cash leaves faster than it returns, an organisation can find itself in deep trouble taxes, expenses unpaid and threats of insolvency. It is important for any organisation to understand their options for bridging this crucial gap and remaining stable in an otherwise unstable economy. Bridging your cash flow could significantly help your business.
Collect on Accounts Receivable
Creating credit terms with customers is a better method for collection than setting a specific time to pay. By doing so an organisation can receive a steady stream of incoming cash so that there are no gaps without pay. If an organisation has a set invoicing system, they could consider using a debtor finance program. This loan allows an organisation to leverage their accounts receivable balance to receive the monies due in a few weeks now. Debtor finance is especially helpful during slow periods or off-season work periods.
Too many organisations purchase their equipment and needed items through expensive loans. Once these items are outdated an organisation must sell and purchase a new replacement. If they still carry a loan on the item, this may not be feasible. Equipment depreciates at an alarming rate. To improve cash flow an organisation should consider leasing, rather than outright purchasing. Lease and finance programs are available to help businesses acquire equipment including office desks, factory machines and vehicles.
Short Term Loans
Short term loans are a great solution for immediate cash flow problems. These loans are extended for a short period, typically three to six months and allow organisations to make purchases, bridge the gap on cash flow, pay expenses or even cover bad debt. By getting a short-term loan through a bank alternative lender, an organisation can receive their much needed cash within as little as 72 hours.
If your organisation is suffering a cash flow problem, ALC Commercial can help. We’re an alternative lender that offers numerous finance options to help increase an organisation’s cash flow without decreasing profits. We strive to assist our customers in their financial success and with our extensive list of financial products, we can be your organisation’s one-stop shop for all of your financial needs.
Find out more today by calling a financial specialist at 1300 886 996 now.