It is perhaps inevitable, that almost every business will at some point, or another find themselves short of cash. Whilst being low on funds can of course be immensely stressful and hindering to your business’ growth, there are number of ways in which you can tackle your financial issues head on:

1) Seriously Review Spending

It is perhaps obvious that businesses should review their monthly, weekly even daily expenditure regularly, to see if there is any opportunity to cut costs, but many business owners simply don’t do this as often as they should do. 

Check old receipts and bank statements at least on a monthly basis to pinpoint the main sources of your spending. Is there anything that you could cut back on? Are there expenditures you could cut out altogether?

According to Entrepreneur Europe, a central area where business’ mismanage their spending is on the costs of insurance coverage: workers’ compensation, unemployment, general liability, general property and casualty, vehicle, health and other employee benefits. So it may be worth reviewing how much your business spends on insurance cover and if there are any better deals out there available to you.

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2) Actually, Make the Cuts

Once you have reviewed your spending, you need to act and make the necessary cuts for your business to recover. Do you hire a professional cleaning team, when in reality you could do the cleaning yourself, or between your staff? 

Could you renegotiate your rent or even downsize your office or shop space? On a smaller level, if you have noticed your energy bills to be particular high, replace old light bulbs for energy savings light bulbs or consider switching energy providers. There are multiple cuts and changes that can be made to reduce monthly expenditure.

3) Ask Customers to Pay Upfront in Advance

This is a useful way to improve cash-flow particularly if you’re a service-based business.

As long as your business has a good reputation, you should have little difficulty with asking customers to pay in full upfront. Many customers actually prefer paying upfront, so that they can budget effectively for the remainder of the month.

4) Consider Alternative Funding Options

An innovative funding alternative that many small businesses now opt for, to solve short-term cash-flow problems, is a merchant cash advance. Your business will receive an instant cash-boost in exchange for a small percentage of your future debit card and credit card sales. It is one of the fastest ways in which you can increase your business’ funds, and it is far more accessible than a bank loan.

Reasons to Get A Merchant Cash Advance:

* There is no interest to pay: rather than paying interest on the sum borrowed, you instead agree with the lender a fixed fee upfront. Consequently, you will know exactly how much you will have to pay back, making future financial planning much simpler.

* Repayments are also flexible and never fixed. if you earn less one month, then in turn your repayment for that month will also be less, so the amount you pay back is always nicely in sync with your business’ performance.

* Applications for a merchant cash advance are made entirely online and within minutes you will know whether or not you have been accepted, so there is no waiting around and approval rates are high.

There are a great number of reasons to get a merchant cash advance, so it is an option well worth considering if your business is particularly strapped for cash.

5) Try to Obtain A Business Discount

Many suppliers will offer business accounts and business discounts if they know they are guaranteed orders for the foreseeable future, so if you haven’t already it may be worth re-negotiating with any of your current suppliers to see if you can get a better deal.

6) Sell Unused Goods

Many business’ accumulate goods and appliances in the beginning that in the long-run are actually very rarely, or perhaps even never, used.

If you can identify any valuable goods in your business that realistically you could sell on, and still operate at the same level, this would be a big help to solving cash-flow problems. For example, paper-shredders, toastie makers, even fancy coffee machines that aren’t in daily use, are great items to upload to Ebay to try and make a bit of extra cash?

7) Consider Reducing Your Own Salary

Whilst this is perhaps not a popular suggestion, reducing your own salary for a few months whilst trade picks up again will allow for your business to benefit financially in the future.

Cutting your own salary rather than the salary or hours of your staff members will help keep up morale within the workplace and keep your employees feeling secure and stable within their jobs. There are a vast number of ways in which you, as a business owner, can tackle any financial struggles that you and your business face.

To End…

Smaller strategies, such as seeking out discounts and making cuts to your expenditure, will surely see the improvement of your financial situation with time and patience, but for a faster track solution, an alternative funding solution, such as a merchant cash advance, can provide more instant financial relief for your business.

Posted by Wendy Dessler

Wendy is a super connector who helps businesses find their audience online through outreach, partnerships and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized marketing plans depending on the industry and competition.

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