How to increase working capital and grow your business
Happy New Year!
The start of the year is a great time to sit down and decide on your business goals for 2019. In doing so, it’s important to first take stock of what you set out to accomplish last year, and also check in on your business financial health with these simple questions:
- Has business performance met expectations last year?
- Do you have a healthy working capital?
- Will additional working capital help to accelerate your business growth?
If your answers to the above aren’t ideal and you find that you’re not on track in achieving your business goals, perhaps it’s time to consider leveraging business financing to boost your business.
Contrary to popular belief, the most opportune time to take up business financing or a business loan isn’t when the business isn’t performing well. Having access to working capital is vital in not only ensuring that your business stays afloat but is also able to grow. Boosting your working capital means that your business is able to seize opportunities as and when they arise, and positions your business well for growth and expansion.
A small business loan, when monetised wisely, is your stepping stone to larger opportunities, higher growth potential and business expansion. Those ‘big projects’ that you’d like to take on previously, can be possible today.
Here’s how you can leverage business financing to:
- Fund your business growth
In a recent interview with Money FM 89.3, our CEO and Co-founder, Ajit Raikar shared that the top priorities for today’s SMEs include investing in productivity and productivity gains, smart technology, internationalising and innovation.
“But I’m cashstrapped!” is not an excuse anymore. There are numerous options for SMEs to quickly access working capital, for example, P2P lending platforms that offer business loans and financing that work to your favour, so you can accelerate your business growth and steady your business in the long run.
- Free up cash flow
Gone are the days where you’ll need to wait for the next 30, 60 or 90 days for payment on your invoices. It’s always a painful process, having to follow up and chase for payments due and waiting for cash to come in before being able to take on or start new jobs and projects. This seriously impacts any business cash flow and as every seasoned business owner will know, it affects the company’s survival. Invoice financing can be a good strategy for your business as it optimises your Accounts Receivable to free up cash flow, so you can take on multiple projects concurrently without worry.
- Kickstart your projects
So after you’ve won a project bid – what’s next? Fulfilling your orders and ensuring that the project finishes of course. Purchase Order Financing can provide the working capital to purchase the materials and equipment you’ll need, and help you see your project to fruition.
Now that you’re keen for a loan but not sure where to go? Always start with a clear intention of each small business loan and find a lender that will suit your business. Don’t be afraid to call and ask for more information to answer your queries. Do as much research as you’ll need. Most importantly, find out how much interest rates you’ll need to pay for the loan you’ll be taking up. Use our loan calculator here.