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Three Smart Ways To Get Cash For Your Struggling Business

by Olufisayo
Ways To Get Cash For Your Struggling Business

Have you ever looked at your bank balance through your hands, as though you’re watching a horror film?

Of course you have. Almost everyone apart from the cloistered elite of royalty and riches has found themselves strapped for cash at some point or another.

Now, imagine something even worse – it isn’t just your personal bank balance causing you palpitations, but that of your entire business. You’re so much in the red that you can’t even see the figure on the ATM anymore – the entire screen has just turned red, eyeballing you like an exclamation mark of financial depression.

Ways To Get Cash For Your Struggling Business

And, when your business is in the red, it isn’t just you that’s affected, but your employees, your clients and, gulp, other businesses who you’ve loaned money from. When they begin knocking at your door, you know that you’ll have to pluck up some cash quick-sharp or potentially face bankruptcy.

But, don’t worry – there are ways to gain some cash rapidly if your finances are seizing up, and we’ve rounded up just a few to help you keep your business afloat.

Factoring companies

An ideal form of cash recovery, factoring companies will take your unpaid invoices off your hands with a small percentage shaved off their full value. The factoring company will then chase up the invoices to gain back their actual worth.

For example, if a set of invoices is worth £3000, a factoring company could pay you £2700 for them, then hunt down the invoice clients to make a profit.

Indeed, it’s a great way to kill two birds with one stone, allowing you to gain something back from unpaid invoices while getting cash quickly, with many companies offering cash back for your invoices within three days.

Keep funding aside for later

When you were a young buck start-up, the temptation was probably high to blow that wad of raised finances as soon as you got it, focusing on the profits of today rather than the cash flow troubles of tomorrow.

That’s why when the money is flowing, you should be sure to set some aside for a rainy day, having a separate stash of funds to cover bills and staff wages for when money troubles come calling. Then, hopefully, you’ll find you’ll have put aside enough dough to cover your outgoings until business picks up again.

Find another investor

If money is truly becoming too tight to mention and your other options are failing you, then it might be time to find another investor in your company who can give it a financial shot in the arm.

Although this might mean relinquishing a certain level of control from your business venture, it could also spell the difference between your business staying afloat or sinking, so find an investor you can trust and gain a little bit of extra capital.

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