Ebuzznet

Web Design and Blogging

  • HOME
  • SEO
  • TECH
    • ANDROID
  • BLOGGING
    • DEALS
    • REVIEWS
    • MAKE MONEY
  • WEB DESIGN
    • WORDPRESS
    • THEME
  • SOCIAL
    • FACEBOOK
    • TWITTER
    • LINKEDIN
  • BUSINESS
  • CONTACT

Cash Flow When The Banks Say No

Home > Small Business > Cash Flow When The Banks Say No

If you run your own business, you probably need very little convincing of the importance of cash flow. Cash flow is what keeps a business agile and allows it to capitalize on opportunities that can facilitate growth for the business and prosperity for the entrepreneurs at the helm. Think of every time you’ve managed to snap up a piece of equipment at a bargain price. What would your productivity be like if you didn’t have that equipment? What about that time you moved to a swanky new premises with better facilities and foot traffic. Just think how much it would have impeded your growth if you’d stayed where you were.

Cash Flow When The Banks Say No

Image Credit

Of course, maintaining a healthy cash flow is easier said than done and there are many reasons why capable entrepreneurs find themselves in the throes of a cash flow catastrophe. All it takes is an unexpectedly high tax bill, a habitually late-paying debtor or an unexpected employee absence can all prove a potential impediment to your cash flow.

For years many entrepreneurs reached out to banks for a loan to ease their cash flow but this is becoming increasingly problematic…

Why banks are saying no to entrepreneurs

Banks are still recovering from the financial crisis 10 years ago, in which reckless lending created an unsustainable bubble that collapsed and resulted in many countries bailing out their banks with taxpayers’ money. Needless to say, it’s not a phenomenon they’re keen to repeat. Hence, banks are far more gun shy when it comes to lending, even lending to established businesses.

But don’t despair! Just because the banks reject you this doesn’t mean that you don’t have options…

Alternative lenders

Banks are no longer the only game in town and the rise of digital lenders allows businesses to pursue alternative lines of credit after being rejected by banks. These lenders, such as businesslineof.credit can be a handy lifeline when more traditional lenders fail you. Their lending criteria is looser than that of a bank and, because they have far fewer overheads than their brick and mortar counterparts, their interest rates are often pretty favorable too. In most cases you will need to have been in business for over 6 months and have an annual turnover of around $50,000.

Business credit cards

If your cash flow needs are relatively small, credit cards can give you the liquidity you need to stay agile. While you may not be extended the same amount of credit or interest rate of a loan, business credit cards can be very handy so long as you factor the interest rates into your monthly costings.

Plus, if you pay your debts in full you can usually expect a period of interest free credit.

Overdrafts

Hopefully, if your bank is reticent about the prospect of loaning you money, they may be more enthusiastic about allowing you an overdraft on your business account. While it may amount to little compared to a short term bridging loan or even a credit card, it can ease your cash flow and enable you to to carry on operating optimally while you chase your debtors and keep on top of your tax affairs.

Filed Under: Small Business Tagged With: Banks

About the Author

Tech and Small Business Blogger

How to Update TomTom Map


Update TomTom Map for Free

Stand Out In The App Market Through Your Mobile Applications

Top 10 Small Business Ideas 2013

5 Ways Google Authorship Helps Home Service Companies

The Link Between SEO And Social Media

The Best 5 Websites To Get Reliable Content From

5 Major Green Apps

CloudLayar Security For Your Website

The Rise of the Planet of the Mobile Websites

Improve The Airflow Around Your Company’s Office This Summer!

Mobile Apps & Your Business: How It Affects What The Marketplace Thinks

Lucky 6 game for Android Review

The History of Microsoft Technology

Apply These Well Known Web Models To See Success From Your Stock Trading Site

5 Local SEO Tips for Beginners

10 Reasons the Death Star Project Failed

Staying Connected at Work

CactusVPN — The Better Way to Anonymous Web

12 Things Only Epilator Users Will Know

Save A Fortune By Streamlining Your Supply Chain!

Where Should You Put Your Company’s Excess Cash?

Why You Shouldn’t Worry About SEO Ranking Reports?

SEO Tools For Competitor Keyword And Rankings Analysis

Best Android Application For Business in 2013

The SEO Fundamentals You Need to Get Right

How to Select the Right Format for Blog Videos

Why You Should Order A New Time Clock Ribbon

Safeguarding Your Company From Dangerous Threats!

Uncovering The Greatest Challenges Of The Oil Industry

3 Ways to Grow your Business with Facebook

Top 10 Creative SEO Ideas

Recipe Manager App for iOS Devices

Recipe Manager App for iOS Devices/

Ebuzznet, All Rights Reserved Web Design and Blogging | Free Blog Setup | Write for Ebuzznet | About Us | Contact Us | Privacy Policy | Disclaimer