[AD] Cash Flow Is So Important In Business

If you are in business, one of the hardest parts of any business is cash flow. If it is not running along smoothly with a regular cash flow on a monthly basis it can have a detrimental effect on your business and how you will be looking to expand your business. It can stop any plans that you may have such as buying new equipment for your business, simply because you only have enough money to pay the regular bills and wages.

If you are a seasonal business this can be even more prevalent because you are relying on seasonal months to hopefully build up cash in the bank to see you through those lean months when cash flow is slow.

I have been in business myself for about 20 years as a painter and decorator. There is no doubt that over the years I have had my lean spells especially through the Christmas period and early new year. This means I have to budget very carefully to make sure I have enough cash flow to get me through the quieter months.

There are many ways to help your cash flow or ways to secure extra funding for expansion of your business. You could of course go to the bank for a loan, but as we all know most banks nowadays are unwilling to lend money to businesses unless you fit into a specific category.

So how can you raise money to buy a new machine that enabled you to increase your turnover and grow your business. Nearly all businesses nowadays accept payment via a PDQ machine and this is one way of raising funds. It’s call a business cash advance.

A business cash advance is a loan based upon the credit card monthly turnover so typically you would receive a loan which is equivalent to your average monthly turnover. You then pay it back to the lender over no fixed time and it’s automatically taken as you make sales. What is good though is if you have a slow month ahead of you then less is paid back. If sales are booming then you pay back more.

There are some similarities between a bank loan and business cash advance. They are in fact completely different products. With a bank loan it is generally a fixed term loan with fixed payments which won’t have any bearing on how your business is doing. A business cash advance loan repayments are designed around your sales via debit and credit card sales simply meaning the better the sales the more you pay and during quieter times you pay less. This is an open ended amount of time. This will of course take the stress away and give you the time to run a successful business.

To make a business cash advance loan for your business you will need to receive most of your sales via a PDQ machine, and your business must have been trading for at least nine months to qualify for a business cash loan.

If you run your own business, big or small, how do you finance the business? Do you have a cash advance loan or have you considered one?

I would love to hear your experiences in the comments below.

This is a paid collaborative post.