3 Ways to Solve Your Cash Flow Problems with Alternative Finance

Last post: Aug 8, 2018

3 ways to solve your cash flow problems with alternative finance including Merchant Cash Advances, Revolving Credit Facilities and Invoice Financing.

For a lot of businesses, the key to growth and sustainability is cash flow. Ensuring that you have consistent money coming in to pay your staff, bills and services is crucial for every small and medium-sized business owners.

But cash flow issues are consistent across many businesses who have to keep up outgoings. Whether it be because the business operates on a seasonal basis, technical and contract businesses who work on long term contracts, as well as builders and construction businesses who have to wait for a project to finish to obtain their funds.

With this in mind, there are three alternative finance facilities that Choice Business Loans can help you with that can fix your cash flow problems.

A Merchant Cash advance is great for businesses who have high revenue in certain seasons in comparison to others. It works by taking a percentage of your card terminal payments to pay off a loan. They're most commonly used by restaurants and bars.

A Revolving Credit Facility works quite like an overdraft. The credit facility allows you to obtain funds only when you need it. Dipping in and out of this 'overdraft'. This is great for businesses who have uncertainties when it comes to claiming funds.

Invoice Finance is a way of getting your invoices paid up front without the long wait of payment terms set by the debtor. Invoice Finance is great for agencies and those who have large invoices with reputable companies. The finance is paid off by only receiving a certain percentage of the overall invoice.