Fiscal emergencies arrive unannounced and they are best faced when the business has a good financial standing. Small businesse financing that are still trying to make a mark and set a firm footing in a particular industry face such emergencies more frequently. The best way to face them is by making use of the right finance option which could be any of the following: Machinery or Equipment Loans: These loans, as their name suggests are meant for the purchase of equipment or machinery for an enterprise. Line of Credit A line of credit is a flexible finance option which can be useful during working capital shortages. This facility includes a credit limit which is extended for a particular period of time. Interest is paid only on the amount withdrawn/used from this limit. Merchant Cash Advance Liquidity crunches faced by merchants, retail stores, and restaurant businesses are best fulfilled by merchant cash advances. These are valid for enterprises that employ a POS system. Supply Chain Lending Small businesses can use supply chain lending solutions that consider the account receivables to grant cash advances against bill values. Also Read: Types of Small Business Loans to Consider Flexible Payment Loans These debt instruments are ideal for small and medium-sized enterprises that have significant orders and they have to make payments to their suppliers. These loans can also be used to add more inventory to cope with the increase in demand.
0 Comments
Leave a Reply. |
AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |