Is The Recession Killing Your Cash Flow?
The recession continues on despite the central bank related news stories that tell us everything is starting to turn around. And for small and medium sized business owners, business financing of their cash flow continues to be challenging as lenders continue to sit on the fence until they feel the overall economy has improved enough.
Small business loans are still available, but they are much harder to come by than a year ago. So if your cash flow is hurting, or starting to look like it could take a down turn, don’t assume that your local banker is going to extend you more credit any time soon.
Asset based forms of lending that tend to be higher in cost, have become more popular as the global cash flow gets squeezed. Credit facilities like accounts receivable factoring and credit card advance programs do provide a source of cash for small and medium sized businesses, but it definitely comes with a high ticket price and requires the business to have some strong underlining margins to be able to afford either one of these solutions.
But in the short term, it can just be about survival for some, so even paying a higher cost will be worth it to many business owners.
