Doing business isn’t always perfect. Much like the real world, there will be unexpected costs. Maybe your daughter broke her arm climbing a tree, or maybe your landlord is increasing the office rent by 10%. Both scenarios may require extra capital that isn’t available. Maybe all your personal funds are tied up in your new house. In that scenario, many people would consider a home equity line of credit. But in business, when you don’t have to stake personal assets for business financing, what are your options?
Small Business Loans
A traditional bank loan is an appealing option for many entrepreneurs seeking small business loans. The difficulty arises in securing sufficient funding, or any funding at all if you are a new business. Additionally, the time it takes to receive the funds may be too late to cover whatever unexpected costs you are facing.
Small Business Line of Credit
A line of credit is an awesome business financing tool that offers more flexibility to your business financing than a typical bank loan. Yet, when you’ve reached the end of the line of credit, you may need additional financing to meet overhead, cover payroll, and deal with the unexpected.
Small Business Invoice Factoring
Invoice factoring services offer a business of any size and any age flexibility and speed in financing. By advancing payment on open invoices, a factoring company can help de-clutter a company’s accounts receivable and free up working capital. The sale has already been made, so there is no debt to repay for your business. Invoice factoring solutions help cover the unexpected costs of business and weather any storm that may be coming.