Working Capital Assistance for Your Business

If you are a small business owner, you understand the challenges involved in keeping your small business operating. You ensure that your customers are paying on time. You move the inventory and make sure that you have what you need to do that. You also want to give your customers the ability to use credit or debit cards. All of this involves expenses which in the business world is a liability.

You also sell to your customers, which depletes your inventory. Their payments to you become an asset. Your job is to be sure that as the inventory on hand declines, you are able to keep up with the supply and order more to balance things back out.If you run out of a product, it could lead to a need for a merchant cash advance to quickly resupply.A healthy supply is an asset. Having more on hand than you can sell is a liability. 

What If You Run into Cash Flow Problems?

Once you are in business a few months you should have started to build up a customer base. These customers will tell others and so your business grows. As it grows, you watch what your customers are buying. You analyze which products are selling. Some may be more popular than you thought, and others may sell less than you expected, so you adjust your on-hand inventory accordingly. You could also have a retail store suddenly stuck in the center of road repairs. This could temporarily slow down sales and you could run into a temporary cash flow problem. What do you do? You are worried about the bills due and the mounting inventory.All of these situations could cause you to need a cash advance for a retail store.

Will My Bank Help Me?

The short answer is probably not. You will need retail store business funding in these situations. Banks tend to be skittish about funding new businesses. Capital investment firms, on the other hand, look at a new existing business, determine if it is making money and has run well since its start, and base their funding decision on that. 

What Do I Do for Low Inventory?

When you have a small business like a liquor store it is a challenge to keep the inventory stocked properly. You want to be the “go to” place for your area. If you always have your most popular products well-stocked word gets around, especially if you operate a business that sells liquor. It’s important to build a relationship with a company that does liquor store purchase financing. Why would you need liquor store business financing when you already have the store up and running?

Why Would I Need More Funding?

This type of business gets a lot of its customer by word of mouth. For example, someone will have been to a party or event where a particular liquor or microbrew was served. Now they are hosting an event, but they can’t find the product at their usual sores. Their friend tells them about your place and in comes the order. This is, of course, a win for you. The problem arises when word gets around, you don’t yet realize you’ve become the main supplier in your area, and consequently, your stock gets low. Worse yet, you don’t have sufficient working capital to replenish the supply.

Perhaps you had an event at your nightclub and introduced a new wine, beer, or liquor. People that attended the event are now clamoring for the product. You have to stock it so you need to find a company that handles nightclub business financing. This gets you the inventory you need quickly. Disappointed patrons don’t stay patrons for long.

Where Can I Get the Capital I need?

Your bank typically won’t help with a loan for working capital and it will take far too long for you to actually get the funds you need. You have to find a place to go at the drop of a hat. You need a company that specializes in the best small business funding.

A bank has requirements that capital funding companies do not. These companies provide short-term loans that act as a bridge until you can get your inventory better stocked to adjust to the new role you are playing in your community. Make no mistake, you can’t just walk in, ask for money and expect it to be given to you. Companies that will provide liquor store purchase financing also have requirements.

The good news is they look at risk factors differently. One part is looking at how long you have been in business and the next part is determining if you have made a profit during that time. They don’t require that you’ve been in business for years, months will do. Once you are accepted the funds are quickly available.