Small businesses are always in search of sources of working capital finance.
Here are three ideas for you to increase your free cash flow.
Get a working capital loan.
Working capital loans can be used to cover day-to-day expenses such as payroll, utilities, rent, contractors and other miscellaneous bills. Financing companies offer working capital loan rates that are competitive. There are several types of repayment terms but the most common is factor. Factor repayment is based on your sales. Each time you make a sale, the lender will take a fixed percentage. This is great for retail and service businesses who need working capital. With factor repayment, you only pay when you make a sale.
Offer customer finance.
Customer finance is another great way to increase your working capital. The concept is simple. You allow your customers to buy now and pay later. At Financing Your Way, we help small businesses like yours to increase sales by offering a buy now and pay later option. There is no risk to your business. When customers are approved you receive 100% of your funds, without the wait. Customers pay over time and build or improve their credit. Your business maximizes your free cash flow making you attractive to investors and lenders.
Increase your inventory.
If you choose to offer customer finance, a great way to continue to increase working capital is to invest in inventory. Begin by analyzing your sales and finding the best-selling products. It is important to increase inventory levels slowly. Having too much inventory can limit your free cash flow. We recommend increasing your inventory in small increments so that you can find the ideal level of inventory and free cash flow.
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