What Has Changed Recently With Investments?
We commonly hear a business owner or an individual who is trying to get some ways and means to help a business grow or to help in one’s credit condition. With several firms and people actively searching for different sources of finance, we are seeing nowadays different manners how we can access finance.
One source of finance, that usually companies may not know that they actually have in their keeping, are cash reserves. Know that you can unlock your cash and release it back to your operation by allowing your company undergo a self-finance growth plans, and this can be done by reviewing closely at some credit procedures, how the terms of credit are granted, and how to chase outstanding payments.
By taking a good look at your inventory management process and see where the cash of the company is trapped, you will find another source of finance, and you can do this by making sure that your stock is kept at an optimum level.
You can also manage well your working capital by not only having better control of debtors and stocks, but also by maximizing your credit terms. You can review at your payment terms to your suppliers, like extending terms to 35 or 45 days to take full advantage of your cash position.
If the traditional avenues of getting funds is becoming difficult to a certain company, personal resources of the owners can be used to fund growth. There are immediate actions that can be done to help funds inflow into your company, such as taking on mortgages on your residential properties, drawing on your cash savings, or using your personal credit cards.
Another easy way to raise finance is to take loans from your family and friends, which may be less stressful but consequences have to be faced like higher interest rate and sometimes risking trust and relationship if something will go wrong.
The next way to get that finance needs is asset finance where invoice discounting, factoring and funding of asset purchases are the sources. In this mode of finance, you will have an asset financier who will buy the machinery, equipment or vehicle needed for your company’s operation, and these bought assets are at the same their security, thus you do not have to provide additional collateral plus you get to keep your cash and use it for funding the growth of your company. This type of source of finance will help up speed the flow of cash into your organization since cash can be accessed fast found in the log book of debtors.