Running your own small business can be a dream come true, and your time and effort may ultimately be rewarded by a steady source of income and the ability to control your work hours on your own terms. However, while there are many benefits associated with running a small business, there may also be frustrations and stressful financial situations. For example, you may have trouble getting your clients to pay their invoices on time, and this can create a financial shortfall and a growing stack of unpaid bills. This is just one instance of many possible scenarios that can result in a financial pinch for your small business, and you may be wondering how you can get by until more funds roll in.
Establish a Rainy Day Fund for Your Business
By thinking ahead and taking precautions for unexpected financial situations, you can be better prepared to navigate through a shortfall in funds. Establishing a rainy day savings account for your business is one of the best steps you can take to get by in a time of need. Simply establish regular savings habits for your business just as you would establish them for your personal finances. However, if you are currently dealing with a financial need, establishing a rainy day fund today may not be helpful for your existing situation.
Turn to Credit Cards
One idea to obtain the funds you need when savings is not an option is to rely on credit cards. Your bank or financial institution may be willing to extend a line of credit or to open a credit card under your company’s name, and you can use credit cards to pay for many of your expenses. However, credit cards typically are not useful when you need to pay payroll or have other urgent needs for liquid cash unless your credit card allows you to take a significant cash advance on it.
Obtain an Installment Loan
Whether you cannot obtain a credit card, your credit card is maxed out or you need access to cash rather than credit, applying for an installment loan is another great idea to consider. MaxLend.com is one lender that offers affordable financing solutions for businesses. These are loans that have an easy application process and a fast approval time frame. There are also flexible repayment schedules available to help you make the loan more affordable for your budget.
The best idea is to prepare for a financial emergency ahead of time by funding a savings account for your business. However, if this is not an option available to you today, it is great to know that you can obtain funding from credit cards and installment loans.