Bridging The Gap To Pay Day

When you work for yourself it can be tough. We all aim to have enough money in the business account to pay our bills and expenses for the months ahead, but it’s not always possible. So what happens if you hit a cashflow issue?

Cash Is King

You’ve probably heard the phrase ‘cash is king’ before and it certainly runs true in business. You could be working on the biggest order in your company’s history, but if you don’t have cashflow to pay for wages and to buy materials, then what use is it?

That’s why you should always try to ensure that you have more money than you imminently need. But, sometimes life happens and I know it isn’t always possible to have extra cash at your immediate disposal.

Taking A Personal Hit

If you run a company yourself, then you may decide to take a hit for the good of your business. Doing this is far from ideal, but we all do what we need to, in order for our business to prosper.

You may decide to invest some personal funds into the business to see you through a sticky period, or to loan the business some money from a personal savings account.

Alternatively, you could forgo a pay day in order to make your business books balance. However, a word of warning; his could have an impact on your personal outgoings. So if you then need to lend some money personally, you could do that. The credit options open to you will depend on your individual circumstances, but there are payday loans alternatives available which may help you to bridge the gap.

Lines Of Credit

An alternative to personally bailing out your business would be to access some credit. But if your company is new, or small, then you may struggle to do this. In that instance, you could look to a company like Polar Credit in a personal capacity. But you need to remember that you will be personally liable for any credit that you do take out.

Forms Of Investment

If you are experiencing cashflow issues because your company has suddenly had a serge of growth, then now may be the time to look for external investment. There are lots of business angels that on the lookout for exciting projects to be a part of. So have a think about the contacts you have an who you’d potentially like to get involved in your business. It’s also worth talking to contacts within your field, to sound them out as potential partners.

Moving On From The Blip

When you start a new business, you are wandering into the unknown. The whole process of running a new company is a learning curve and you’re bound to experience bumps in the road. This may also be your only experience of working for yourself, so you’ll truly be learning on the job.
It is important to remember that cashflow issues are encountered for a number of reasons and if you hit one, you are not a failure. Try to learn from what happened though, so you can future proof yourself and avoid making the same mistake again.
Note: this is a collaborative post.

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