Which Working Capital Sources May Help Your Business Fast?

financial-literacy-580x387When your business needs cash fast, you need a plan. Whether you want to take advantage of a profitable opportunity or you need an influx of cash to deal with payroll, there’s a way to get the money you need. Here are a few working capital sources you can receive quickly for your small business.

Accounts Receivable Financing

A very common type of small business financing is accounts receivable financing. This type offinancing allows you to sell invoices you are waiting to be paid at a discount. You can get between 80% and 95% of the value of the invoices and receive funding within 24 hours.

Cash Advance for Merchants

Merchant cash advance financing is another fast way to get the money you need. This allows selling a portion of you future credit card sales for fast capital. You will pay the advance back through direct credit card sales and there is usually no set terms for paying the money back. However, this type of funding may come with a high rate.

Asset Based Lending

Businesses may be able to use inventory, machinery or other equipment to help obtain funding quickly. This type of funding comes from an alternative lender and will often be based on the value of the asset put up for collateral. The structure may be a loan or a line of credit, which will work much like a credit card.

Purchase Order Cash Advance

If you have purchase orders you are trying to fill, a purchase order cash advance may be the answer. This type of funding will allow you to get the working capital you need fast. The financier will be the one fronting the money and once the goods are delivered, you will repay the loan.

When you need money for your small business, these sources of funding may be the answer. You can get the cash you need fast and get on with the business at hand.

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