The need for easily available credit is a critical driver of growth in all kinds of businesses anywhere. Different businesses have to deal with the ups and downs of demand in their markets during specific periods throughout the year. When you find yourself in a similar situation but with a sizable cash shortage to fund the procurement of goods and meet the rising demand, traditional sources of funds will not help you. In case your credit score is weak, and you need the business funding in a hurry, there is no way you will get it from any source other than a non-traditional or alternative funding agency that specializes in providing quick credit to small businesses.
Cash shortfall during peak seasonal demand
Is your small retail business dealing in products that have high seasonal demand but are dormant for most of the year? In that case, it is obvious that the fortune of your business depends on your ability to sell the most you can, during these periods of peak seasonal demand. Now, if you happen to run out of cash on the eve of the seasonal demand season, for procuring merchandise, you are not going to get it in such quick time from traditional lenders like banks. Such quick and hassle-free business capital loans are provided only by alternative funding agencies.
Equipment breakdown in the midst of a project
There is no certainty with the safety and smoothness of project execution especially when you are dealing with expensive capital equipment. You need to factor in the chances of equipment breakdown at your factory, on the construction or at the mining site, or wherever your project may be. Depending on the intensity of the work taking place on your equipment or mishandling by the personnel manning them, you could be looking at damages. If these are minor, you might manage it soon but it they happen to be even moderate or major, you will need the necessary business funding to get the project work back on track. Such funding needs to come very fast and that can only be ensured by an alternative funding agency.
Shortfall in working capital
A common problem facing all kinds of businesses especially those that are small or have just begun, e.g. startups, is shortfall in working capital. One of the most crucial expenses under working capital is wages of employees that cannot be delayed under any circumstances. A business can remain afloat without equipment or inventory for sometime but it cannot survive without workers even for a few days. When you fall short of working capital and it is apparent that you won’t be able to pay the wages of employees, look for a funding agency that provides business capital loans in quick time and without eligibility hassles.
Every business balances itself on two financial planks – debt and equity and throughout its life cycle, the health of the business is a reflection of how well it balances these two critical planks. The perfect balance between debt and equity is not written in stone but there is a threshold that prudent business owners set for their businesses. On the other hand, the lending agencies set their own threshold to assess the capacity of a business to pay back any debt. Alternative funding agencies usually extend a much longer rope to small businesses and they consider the potential of the business on multiple parameters rather than just the owner’s credit score.