No matter what size your business may be, finding that little bit of extra cash is always a welcome boost.
When an investment opportunity comes calling or cash runs low the first thought of many business owners is too seek out a business loan from the bank or to seek out a new investor.
Whilst loans, grants, and shareholder certainly do have their place in the business world, there is no need to put yourself in debt or give away percentages of your business if cash can be freed up within the business itself.
At Accountantsplus, we specialise in helping businesses finance themselves by examining your practices, assets, and existing accounts.
In this blog, we will examine some of the ways in which a business can find money from within and make these funds work more effectively for them.
Top ways to free up business funds
Asset management
Any assets that you own outright are exactly that, assets with cash value. It may be possible to access funds by refinancing equipment, vehicles, or even property and given that it is the asset itself that acts as collateral in these agreements you may be able to access interest rates lower than a traditional bank loan.
Shifting old stock
Got a bunch of older stock that has been sitting in your warehouse and just won’t shift? It might be time to bite the bullet and offer an attractive discount to move this stock and free up some funds at the same time.
Sure, if you wait instead this stock might sell at its original price eventually, but by that time you may have missed out on an opportunity that would have revolutionised your entire business.
You could also approach suppliers and ask if they would be willing to take back a certain amount of excess stock.
Invoice Finance
Invoice finance allows you to access the value of your unpaid invoices, giving you an advance on cash that is set to be coming into the business in the near future.
By passing these invoices onto an invoice finance company you can also save yourself the time and stress of chasing up unpaid invoices. Furthermore, unlike loans with harsh penalties for late repayments, invoice finance companies want you to be successful. After all the more business you have, the more money they make and often offer helpful advice and tips as a result.
Is it ever worth getting a grant?
Absolutely. Business grants can be highly useful for many businesses although over reliance on them can prevent business owners from focussing on making their business financially viable.
Whilst the best accountants will focus more on building the company from within by optimising their practices they may be able to point you in the direction of grants you may be eligible for.
For more information on the business funding opportunities that may be available to you, don’t hesitate to get in touch with one of our expert advisors.