AFG Blog

The Best Way to Finance a Business Cash Flow Emergency

As a business owner, staying cash-flow positive can be a constant challenge. Despite your best-laid plans, your operation may be just one equipment malfunction or slow-paying client away from disaster on the cash front.

The number one reason small businesses fail is a lack of cash, not a lack of profits. It would be best if you did good cash planning, and really understand the decisions and expenses in your business that can affect your cash. Your company may be successful but you might not have enough money on hand to order additional inventory or to provide the services necessary to support your customers. Operating cash flow is a crucial metric to tracking your success. Many entrepreneurs look at these numbers as an indication of how well their business is performing, as discovering any patterns or trends in the results can help business leaders address shortcomings or expand on strengths. So, how does one access funding when cash flow isn’t tracking with your success?

Fortunately, today’s lending marketplace has streamlined the application processes for many types of loans, making it easier to get money quickly and efficiently. If faced with a situation that requires swift action to finance a cash flow emergency, there are a variety of options from credit cards to lines of credit, and short-term loans.
Short-term loans let you borrow funds in as little as a week. Similar to a traditional loan, taking out a short-term loan is straightforward—you receive an agreed amount of money upfront, and you sign a contract including a set of terms to pay it back. These terms include fees and interest, which you’ll pay off on an agreed schedule within a defined period.
For example, CorpFin advances short-term loans to companies requiring capital to finance additional products for business growth or who may need to refinance new orders or contracts in addition to their existing business. The loan is then usually settled from resultant increased sales margins or replaced with traditional long-term financing.

Visit CorpFin for more information.