Whether they are offering products or services, many small business owners believe the most important factor in success is sales. While it is obviously true that without sufficient sales, a business will fail but having access to small business capital is equally important. Even the most successful businesses experience fluctuations in sales revenue, causing a disruption of cash flow. Having access to quick capital funding when sales revenue declines is crucial. Without it, not only will daily operations be impacted but it will prevent the business from taking advantage of new opportunities.
Most business owners make the mistake of waiting to apply for small business funding until they need it and are left scrambling for funding when the need arises. It’s best to apply for funding and establish a relationship with a funding provider before it becomes absolutely necessary. This will make it easier to access business capital when it’s necessary. Here are some of the most common reasons businesses need access to additional business capital.
Everyday Operating Expenses
Sales revenue may fluctuate but a business’s daily operating expenses will remain the same. Lease expenses, payroll, utilities, taxes, and other operating expenses will still have to be paid to keep operations moving until the sales revenue increases. Having access to additional capital when sales revenue takes the occasional downturn will keep daily operations running smoothly and prevent the loss of valuable employees.
Unexpected Expenses
Even the most prepared business owner can find themselves up against unexpected expenses. Equipment breakdowns and property repairs are some of the most common. Broken equipment can impede or completely derail daily operations. Failing to keep up with property repairs can cause a business to fall out of compliance with local business codes and could lead to the business being shut down until repairs are made. Access to additional business capital will allow a business owner to make the necessary repairs promptly and keep any disruption to daily operations to a minimum.
Equipment Upgrades
Especially with today’s technology, most business equipment will eventually become obsolete. The upfront cost of new equipment can take a big bite out of a working capital which can leave a business vulnerable. However, delaying equipment upgrades can create a decrease in production and the ability to meet customer demand. If you can’t provide your customers with the products or services they need when they need them, they will end up going to a competitor who can. Also, working with inadequate equipment can lead to employee dissatisfaction and cause them to seek employment elsewhere. This can lead to even more expenses in employee turnover.
Expansion
The ultimate goal of a small business is to grow. This means expansion – either a new location or additional products or services. Much like new equipment, expansion involves a large upfront cost that can seriously deplete working capital. Having access to additional business capital can provide the funds to keep daily operations on track until the expansion begins to show a return on investment.
Small Business Capital – CFG Merchant Solutions
These are just a few of the reasons for needing additional business capital. Ensuring access to that capital is vital to the success of any business. CFG Merchant Solutions offers a variety of funding options to help business owners get what they need to keep their business moving forward.
Whether it’s a merchant cash advance, invoice factoring, equipment financing or any of our other funding options, we will guide you in choosing the perfect solution for your individual business needs. Our team brings to the table more than 60 years of institutional investment banking experience in the credit, commercial finance, and capital markets.
We focus on providing capital access to small and mid-sized businesses (Merchants) in the U.S. that have historically been underserved by traditional financial institutions and may have experienced challenges obtaining timely financing. Contact us or apply online today!