Where Can I Get Emergency Funds for My Business?
When your business is suddenly strapped for cash, what are your options for covering your cash needs until things smooth out again?
Cash flow is one of the most important parts of your business – no cash means you can’t pay your bills! But even the most successful business can run into a rough patch and run short. When your business is suddenly strapped for cash, what are your options for covering your cash needs until things smooth out again?
In general, you’re going to turn to a lender for those short-term needs. Depending on your credit history, the reasons your cash flow is off, and certain other factors, you may be able to get a short-term loan from a traditional bank. If not, there are also a number of alternative sources of funding you can check out.
But not all lenders are created equal and some can actually cause more problems than they solve. Pay Day Loans, Car Title, and other quick cash loans are often referred to as “predatory lending.” That’s because these lenders aren’t bound by the same laws as banks and microlenders, so you don’t have much legal protection. They can basically charge you as much as they want. They don’t expect you to be able to repay – they make more money if you get trapped in a cycle of debt and keep having to pay sky-high interest rates and fees.
1. Traditional Lenders
If you have an established business and a good relationship with your bank, you’ll likely be able to get a short-term loan. That kind of loan is one of the safest and simplest options. You have all the protections of federal banking law, plus you’re dealing with a lender that does this kind of deal all the time. Continue reading Where Can I Get Emergency Funds for My Business?