5 Business Financing Solutions & When to Consider Them

When it comes to cash flow for your business, there are always ebbs and flows due to various factors. However, if you experience something more drastic it may be time to consider some business financing solutions to help you balance things out again.

 

There are numerous options out there, which is why the team from Selectpay has collected the top five for you here!

1. Convertible Debt Financing

 

Much like it sounds, convertible debt financing is when a group of investors chooses to offer financing to a business with the expectation that eventually, that debt they’re paying off will be converted into a financial profit that they will recoup.

 

2. Invoice Factor Solutions

 

Another great finance option for small businesses or growing enterprises struggling to maintain a smooth cash flow is invoice factor solutions, which is a fast and easy way to receive the cash you need as soon as possible. Invoice factor companies provide you with cash based on your outstanding invoices, which are used as collateral until they’re paid.

 

3. Partner Financing

 

This form of financing solution is when your business works in tandem with a strategic partner, often another similar business in your industry willing to invest in your company. Of course, in return, you’ll need to provide your strategic partner with a portion of the sales, distribution rights, or other assets depending on the circumstances of your arrangement with them.

 

4. Crowdfunding

 

Although it might seem a little out of the ordinary, crowdfunding can be a viable option for some businesses looking to boost their bottom line. However, it’s most often used for newer businesses that want to hedge their bets and take a minimal amount of risk when exploring their financing options. Many crowdfunding platforms enable businesses to raise money and also provide incentives for investors as well.

 

5. Microloans

 

For businesses that need money fast, microloans can be a good option and range anywhere from $2,000-250,000. They’re meant to cover a business’s daily operating expenses like supplies, furnishings, and the equipment necessary to operate a specific enterprise. However, microloans often come with stipulations and restrictions on how the funds can be used.

 

6. Payment Solutions

 

Payment solutions such as buy now pay later, deferred payment terms, and cashflow finance solutions can help you get paid quicker while spreading out the cost of your own supplier invoices. Additionally, you can also offer such solutions to clients so that you get paid in full, on time, and they can pay in terms that suit them.

 

Contact us today for business financing solutions!

 

If you’re in need of improved cash flow ASAP, Selectpay can help. We also offer invoice finance services and buy now, pay later solutions for vendors and B2B businesses. So, contact us online today to learn more, or call 1300 566 229 to speak to an expert.