The savvy entrepreneur knows that even the best run of businesses can be reduced to ruins if it does not retain good liquidity. Liquid cash is the lifeblood of your business. Just as our bodies can’t function without out bloodstream delivering much needed oxygen and nutrients to our organs to keep us alive, your business needs a flow of cash in order to survive. Cash flow helps to keep our shelves stocked with inventory, our suppliers paid up, our utilities running and the business functioning as it should. But let’s be realistic. In the world of modern business, any number of things could take place to disrupt the flow of cash through our enterprises. A late payment from a debtor, a delayed shipment of stock or a temporary lapse in essential services like utilities or telecoms; any of these commonplace occurrences could create a clotting of liquid assets around your business, causing it to hemorrhage money.
To keep the medical analogy going just a little longer, if something is restricting the flow of blood around the body, something needs to be done fast to save the patient. Likewise, decisive action needs to be taken to save your business. There are many ways in which you can ease general cash flow but when you need to ease it fast, there are a few solutions that may be best for you.
Thow a sale
Is a whole lot of your cash tied up in solid assets like stock? Get on social media and announce a grand sale. Slash down prices on all of your best sellers and customers will come pouring through the doors. Okay, so you might lose a little of your margin up front but this will likely be a small price to pay to resume normal service and return your business to a fully operational state. Plus, your bargain bonanza may well draw a new stream of clientele who will keep you in mind in future.
This may be an extreme option, but you wouldn’t be the first entrepreneur to bet the farm on their enterprise and come out smiling on the other side. There are many ways in which you can get quick equity on your home. If you’ve already built up a healthy profit on the home and are in need of quick cash it might be worth visiting needtosellmyhousefast.com to get a valuation. Or if your needs are less extreme, you may be able to release some equity on your property by remortgaging your property.
You should go into this with some trepidation. While borrowing may be appealing when you’re in a bind, bear in mind that the faster you can get your hands on liquid cash, the more you can be expected to pay in interest. In other words, while you may experience a bump in liquidity, high interest repayments could put a serious dent in your long term profits. Your best bet is to go for a finance broker and do the math to ascertain whether the repayments on any bridging loans would place a serious squeeze on your profits.