Every business owner has struggled through a restless night wondering how to pay the bills. There are plenty of benefits to running a company and being your own boss. Unfortunately, it comes with the terrifying prospect of balancing the books and raking in a profit. In the early days, the outgoings can get on top of you quickly, and the budget is stretched to the limit. Sometimes, all you need is a quick injection of money. A short safety net could be just what you need to get things back on track.
In this post, we’ll show you a few ways to find money fast. It might just be enough to pay those invoices and give you some breathing room. However, it’s crucial that you set a realistic budget for yourself. Before you follow this advice, ensure you have a plan that draw real profit in the following months. If you don’t, you’ll just end up in the same position in the future.
The first option is seeking a loan from the bank. Small business loans are fairly easy to come by, and your current bank will be more than happy to set a meeting. Of course, this isn’t just free money, and there will be conditions attached. The lender may want to see your existing accounts to assess your business acumen thus far. They’ll certainly ask for a thorough business plan. The bank needs to know that you have a strict plan for monetization so they’ll get their money back.
Borrowing from friends and family is often a less daunting prospect. With a bank or lender, you may be subject to high interest levels. The loan itself may be secured against the business which could leave you bankrupt. Asking friends or family could provide you with a little more breathing room. Of course, your pride might take a hit, but in most cases, your family will be happy to help. Again, approach them with a full plan and repayment option.
You could always sell any existing business assets. If you’ve been trading for a while, you may have a stockpile of equipment or stock that is no longer needed. A company like Capital Asset Exchange and Trading can help you trade your old capital assets. This is perhaps the fastest route to a cash injection. It will also help you avoid any lingering debt and clear your business of unnecessary equipment.
Another alternative is seeking angel investment. You will exchange a percentage stake in your company for the money and skills of an investor. For many businesses, this is a big milestone and requires a fantastic pitch. You’ll need a good network to find the right investors too. Before you approach them, make sure your company is ready for the next step. Get the pitch right and you could bring a healthy cash flow and an experienced board member to the team.
Every business struggles through a rough patch. A quick injection of cash can help you ride the storm and get back on your feet. Just ensure that you are aware of the consequences and can afford any repayments. Good luck with your venture!