Sometimes, it sneaks up on us!
And when it does, sometimes we need working capital to finance that growth.
That is, if you welcome growth and want to ride that momentum.
If change is NOT your thing, STOP reading NOW!
IF YOU ARE STILL READING, there are ways to access the capital you need to ride the growth wave very quickly.
You’ve been busy growing your business, and it’s paying off. You’re keeping your financials current and do your best to predict future market trends, sales goals, and costs.
But growth can sneak up on you. And when it does, you need to fund that growth, whether it’s for marketing expenses, operating capital, equipment purchases or other costs dynamic to your growing business. If you have sufficient cash assets, then you’re all set. If you have a sufficient line of credit from your Bank, you’re good to go.
The problem is, when you set aside those cash assets in the first place, when you created that line of credit, you couldn’t perfectly predict the cash you’d need when the moment of truth arrived in the future. Growth has a way of surprising you, a lot like flood waters after a heavy rainstorm, but in a good way. You may find yourself scrambling to find the capital you need to fund that growth.
Traditionally, businesses caught in this capital-crunch-conundrum turn to their Banker for assistance for a new Line of Credit or an expansion on an existing Line. Maybe a straight loan, or a loan mixed with a Line of Credit. The business owner in this scenario can’t predict if the Banker can or will take on the appropriate risk to fund the right amount of capital needed. The Banker may not see the optimistic opportunity presented by your sudden collision with your growth floodwaters.
Plus, the timeline to obtain the requisite capital funding from your Banker may be too lengthy to get the cash in hand quickly enough.
For the business owner confronted with the surprise of growth, the uncertainties faced with the traditional Bank financing may be too much to bear as they consider matching capital needs with growth experiences.
Pivot to the other extreme, business owners find themselves funding their capital requirements with funding that is quickly available and sufficient in dollar amounts, but the cost of that capital can be astronomical.
In the middle ground between these two financing scenarios exist alternative options. Asset-Based Lending leaning against your Accounts Receivable or Inventory, or specialized financing against your Purchase Orders, provide timely, strategic and cost-effective solutions.
There are also hybrid solutions, financing that meets your short term needs while you work on completing the more complicated traditional financing package.
At Aurora Business Consulting we seek out those alternative financing solutions with a creative mind towards getting you the capital you need in an efficient timely basis to continue your business success story.
There’s no surprise in how we work, with diligence, enthusiasm, and experience.
Email Trevor for more info on how this may or may not work for you!