For many businesses, the answer is that they have very little to no working capital, or even negative working capital. This doesn't give businesses much wiggle room if they have a slow month or unexpected expenses to cover.
Small Businesses Under Stress
It can be daunting to live on the edge, having just enough cash to cover obligations and having to hope that business is doing good enough this week so that you can make payroll or pay off the inventory you bought last week. The constant stress of wondering whether you will make ends meet can wear down any entrepreneur.Every business owner has a level of stress that they can live with comfortably. For some, having little or no working capital is fine as long as they can meet their expenses one way or another. For others, though, more of a cushion is required to bring their stress levels down to a healthier place.
Using a Business Cash Advance as Working Capital
Business cash advances can be a way for businesses to gain working capital to meet their obligations without worry. Instead of having to hope that high sales will be enough to pay creditors, business owners will be able to breathe easy knowing that everything will be taken care of in a timely fashion.For business owners like Arturo Calderon, who received $80,000 in business cash to keep his taco stand going, these advances can mean the difference between no money in the bank and being able to make payroll and buy inventory without worry. "This worked for me," Calderon said of his business cash advance. "I needed the money right away because I didn't want to be late on any payments."
In Calderon's situation, a bank loan for the same amount would have taken 4-5 weeks, time he didn't have. His cash advance came through in just one day, giving him the working capital he needed to make his investors and himself comfortable about being able to pay their bills.
Stay Calm and Move Forward
With your cash flow problems solved, you can think more clearly about how to run the business and make decisions not based on fear or worry. Your new, calmer attitude may very well translate into better decision-making and may help your business move forward more smoothly.Without financial peril continually looming on the horizon, your time can be spent on ways to expand and grow the business rather than on ways to rob Peter to pay Paul. This shift in perspective can lead to greater progress and success as time goes on.
Quikstone Capital Solutions provides alternative funding to businesses that need working capital to help their businesses run better and more smoothly.
