For new and small businesses, growth is essential for long-term success. While many small businesses are focused on maintaining operations and push milestones further down the road, there are several viable growth strategies that can help small businesses expand quickly without taking out traditional debt-based loans.
Working Capital for Growth
When businesses want to achieve growth and traditional loans are off the table, a merchant cash advance(or MCA) is an ideal fit. An MCA is an infusion of working capital that businesses can use for whatever they need – be it purchasing inventory, raw materials, hiring additional employees, or anything else. This gives small businesses the debt-free working capital they need to cover expenses, fulfill orders, and get ahead without the restrictions of debt-based loans. MCAs are a great fit for any business that accepts credit card payments from customers. A small percentage of each credit card sale is used to repay the balance owed, thereby giving businesses the flexibility they need without straining their finances.
Scaling with Purchase Order Financing
One of the biggest problems for new, small businesses is dealing with much larger competitors. One way to compete with those large companies is to net an equally large client. However, taking on a large client account can place a huge strain on internal resources and finances, even if the revenue from a big sale will eventually put your business ahead. Purchase order financing helps to level the playing field by providing businesses with the capital they need to fulfill large or unexpected orders without crippling their operations in material costs. Once the order is completed and delivered, the purchase order financing is rolled into the invoice. When the client pays, the balance of the financing is repaid and the remainder is delivered to your business as revenue. This allows small businesses to take on larger client accounts and get an edge on the competition.
Unsecured Lines of Credit
A business line of credit can go a long way towards helping new and small organizations reach their milestones. Unfortunately, most traditional providers require collateral from businesses with short credit histories. An unsecured business line of credit does not require collateral and is not solely dependent on credit ratings, so even emerging startups can get the capital they need to thrive and grow.
Factoring services, or accounts receivable financing, helps businesses to maintain a healthy cash flow by converting unpaid invoices to cash quickly and efficiently. Waiting 30 days or more for clients to make payments can place a severe strain on cash flow and factoring can help to speed things up by providing cash for unpaid receivables within 24 hours. This allows businesses to cover their expenses and build up reserves to position themselves for growth.
At Web Finance Direct, we provide a wide range of growth solutions for businesses of all types. Whether you are trying to correct short-term cash flow issues, take on larger clients, or expand into new markets, we can help. Contact Web Finance Direct today to get started.