LONDON – Getting low on ready cash is quite normal in the course of business. There comes the time when the level of liquid assets reaches the alarmingly low level, and it becomes hard to meet even the day to day expenses of the business. The option of running finance and short-term loans from any financing corporation or the banks is always there. But the issue with the financing companies and the banks is that the procedure is too complex and time taking as well. Your business won’t’ wait for the approval of the loan from the banks and the financing institutes.
Low on Cash? What Options You Have?
If ever you reach such level then you should start considering the available options you have that can assist you in getting the required amount of ready cash at the shortest time. If your company has some assets that you not in use and are almost useless, then you can consider selling those assets. For example, your company owns some vehicles which are either luxuries or are almost scrap then you should sell such assets. You may get some ready cash to spend some days till you start getting payments from your clients.
The other option may be to seek some investor and get him convinced that you can give him a good profit if he invests in your business. Sometimes this is a good option as you can hope for a big sum in short period. But sometimes it becomes a time taking process if the investor has lower trust in your company. He checks all the available data about your company, and he investigates properly which may lead to delay in getting some cash for your company.
The third option is to pick up your phone and dial the phone number of your friend Bill Gates. Well, you may fail in finding Bill Gates phone number in your phonebook because don’t have any friend named Bill Gates. And if you have then he’s obviously not the owner of Microsoft Incorporation. So leave this idea and put back your phone on the table.
Factoring Companies – A Ready Help
Now the only option you have is to find some factoring company, so let’s get your laptop or pick up your phone again and Google for “factoring companies” in your area. You will find a good list of factoring companies near your location. Just find the best one and dial their number to set a meeting with their agent or with the concerned person. Factoring companies can be a helping hand to you and your business if you have an adequate amount of account receivables and your debtors and clients have some good credit history.
The factoring company will simply approach you, inquire your accounts and keep in view the credit history of your clients and debtors; they will agree to buy your account receivables. They will buy at the lower price than the actual amount, but that will be reasonable enough that you won’t bother at all because your business is at risk and you can’t survive without this cash offered by the factoring company.