Alternatives to borrowing
Successful business owners are those who are always thinking of new ways to grow their business. Most of the time, expansion takes money. You could be thinking of hiring more staff, buying new equipment, updating your facilities or just looking to increase your working capital. And often, the first thing you’ll think of is your financial business partner and its lending solutions.
Well, we’re here to help – but it doesn’t always have to come down to borrowing money. You might be surprised by just how much your own internal resources can be maximized to provide at least some of the cash you need. What we can do as your financial partner is go through some of those options with you, before you resort to borrowing more money.
Explore all options
This is where conducting a review of your business and all its costs and expenses is important. You need to know where you can cut costs so that you can make the most of the savings, without compromising the quality of your products or services.
- Improving your cash flow the most effective and fundamental way to find more money. Tighten up your debt collection practices, reduce costs and consider leasing equipment rather than buying. Conduct a cash flow forecast and then use that to better manage and improve your cash flow. We’ve got guides and templates that can help you do this.
- Make the most of your relationships with your suppliers to get a better deal. Chances are you can negotiate longer payment terms so you can free up more cash.
- Explore investment options, such as angel investors. Talk to us about angel investor groups or networks that we can put in touch with. If your growth plans have real potential, we might know of other partners who’d be interested in investing with you.
- Consider selling off un-used assets. If you have equipment lying around that’s used infrequently, you could sell it and reinvest the cash into your growth plans. Leasing the equipment when it’s needed is often a more cost-effective solution, and you’ll have extra cash from the sale.
It’s important for you to be positive about your growth plans, but also to make sure they’re realistic. Will you have enough money to finance your expansion without impacting your core activities? Make sure you’re not biting off more than you can chew.
Contact one of our Small Business Advisors for help with maximizing your cash potential.
Speak to us about customized leasing solutions from Meridian OneCap, if you are looking to sell equipment or lease equipment.
