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.