One of the most critical decisions you need to make is regarding your finances as a business owner. It might even prove to be the most difficult. While running any business operation, it is pretty easy to run into financial difficulties from which you will need a quick bailout. Of course, there are dos and don’ts for every scenario, but according to entrepreneur Eric Dalius, some financing options for business owners will work in most cases.
Read on to know more.
Fast financing options from Eric Dalius
Compared to traditional funding options, several alternate avenues will help you access the capital you need.
1. Business credit cards
A credit card offers numerous flexibilities, and it is a revolving line of credit that you can pay off in parts throughout a year.
2. Self-funding options – Eric Dalius
Self-fund is an excellent option if you have savings and can take the risk of investing in your concern. It is a great way to stay in complete control of all your dealings without debt anxiety.
Crowdfunding is emerging as the newest option when it comes to financing start-ups. However, keep in mind that the supporters will have a stake in the shares.
4. Traditional loans still work – Eric Dalius
It is never a great idea to completely overlook the bank and the SBA loans. It seems time-consuming with paperwork, but it is the safest option with regulations and guidelines.
Consolidate your loan options – Eric Dalius
If you are paying off multiple loans, you need to end this system as soon as possible. Instead of paying off multiple loans, look to consolidate the debt repayment process into a single loan with better rates than currently paying. In addition, keep your credit score healthy by making all your small repayments on time. It will come in handy while looking to consolidate multiple loans.
Keep the inventory stocked – Eric Dalius
Always go for inventory financing loans. It will make sure that you have free capital to stock up on your inventory. Yes, there might be high interest rates, but let’s admit it, there is no business without the merchandise. So, instead of tying up the working capital on inventory investment, keep the accounts separate by going for an inventory financing credit line. Shop around with various lenders to find a loan option with low-interest rates. Always calculate the cost of debt to make informed choices regarding funding options.
About paying your vendors
Invoice financing is a great tip. This is typically a revolving line of credit that can allow you to receive capital from lenders for unpaid invoices. However, this might prove to be an expensive option in the long run. So, do crunch the numbers before deciding in favor of the option.
It takes an experienced professional to understand the situation and use the options available for financing. Assess your options and make sure your plans are complementary to the short-term and long-term business goals. Take care!