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Monthly Archives: July 2017

How to Avoid 5 Small Business Challenges with Working Capital

There are so many challenges for small business owners, many of which pop up unexpectedly. Most of these challenges will require that you have sufficient working capital to resolve them. These extra funds can be secured through numerous business funding sources. For example, merchant loans are an increasingly popular option through an alternative lender like First American Merchant. Your business can secure the funds it needs in as little as 24 hours.

The following list details 5 of the major challenges your small business might face that can be addressed with additional working capital:

  1. Cash-flow Problems

If the amount of money leaving your business exceeds the amount coming into your business, your experiencing negative cash-flow. Believe it or not, your business can be profitable and, at the same time, have negative cash-flow. Without cash-flow, your business will be unable to compensate employees, pay rent, cover day-to-day expenses and purchase inventory. Securing extra working capital ensures you have the funds you need to cover expenses

  1. Fatigue

It takes happy employees and a well-rested business owner (you) to run a successful small business. If your business is short-staffed, your employee’s performances will likely decline. Likewise, if you’re trying to pick up too much of the slack (even if your super passionate about what you do), your business’ overall success will decline. Applying for working capital lets you add new members to your team, and allows your existing team to avoid unnecessary stress.

  1. Equipment Needs

With the capital it requires to fund day-to-day operations, it can be incredibly difficult to purchase new equipment to replace broken and outdated ones. Trying to operate with broken equipment can be extremely stressful, not to mention unsafe. If it’s hard to find the extra funds to make repairs, complete updates or purchase new equipment, finding extra working capital can help.

  1. Sustaining Growth

Success always requires growth. Growth requires working capital. Unfortunately, if growth happens to quickly, quality is sacrificed. Having additional working capital allows you to find a balance between quality and growth. Having extra funds ensures you have the capital you need to fund growth and plans for expansion, while also maintain your quality standards.

  1. Limited Resources

One of the biggest areas that suffers when resources are limited is marketing efforts. Limited resources prevent small business owners from reaching out and attracting new customers, while also keeping existing customers. Boosting working capital ensures you can implement online advertisements, promote social posts, print flyers, etc. You won’t have to set aside marketing ideas because of financial needs.