Top Tips for Solving Your Business Cash Flow Problem

By April 21, 2020 May 14th, 2020 Pawn Loan

A business can only continue to function and grow if it has continuous cash flow. When the opposite is true, everything becomes stagnant or can even start going backwards.

To ensure your business remains in the black, we’ll take a look at a few ways to solve your cash flow problems. 

What is a Business Pawn Loan?

Many businesses have company vehicles and equipment. Depending on the value of your vehicles and equipment, you might be able to secure a Pawn Loan to the value of half a million dollars. Pawn Loans are also available in much smaller amounts and usually start around the $2,000 mark.

Once you’ve found a Business Pawn Loan provider that suits your requirements, to apply for a Pawn Loan you simply bring in your company vehicle or equipment and take out a loan against a percentage of its market value. As an example, if your company car is valued at $50,000, you may be able to borrow as much as $30,000 against it.

If you’re suffering a cash flow problem, there’s a very good chance a bank would deny you a Business Loan or Personal Loan. This won’t help you dig your enterprise out of a financial ditch and get things moving forward again. Even if a bank did consider you for a loan, you would likely spend weeks gathering and submitting paperwork, and possibly wait a month for the verdict. During that time your business could suffer.

On the other hand, with a Business Pawn Loan, quick approval is the name of the game. You can even have the money in your nominated account on the same day in most cases. There are no credit checks necessary as you are putting up collateral against the loan, so if your credit history isn’t great, it’s not a problem. The no credit checks policy also speeds up the application and approval process considerably.

Different lenders will offer different terms, but generally, you’ll get somewhere up to 3 months to repay your loan, after which you’ll have your company vehicle or equipment returned to you. 

So long as you have an item of value, the process of securing a Business Pawn Loan is very simple and incredibly fast.

Other Ways To Solve Your Cash Flow Dilemma

While a Business Pawn Loan is one of the quickest ways to boost your business cash flow, there are alternatives.

The obvious would be to approach one of the major banks for a Business Loan, line of credit, or even a business credit card. Just be aware that even if you are eligible for finance, chances are the interest rates may be higher overall than what you would pay on a Pawn Loan.

Another possible option is to find an investor; someone who’ll put money into your business for a share of the profits. This investor could be a hands-off silent partner or an active participant in your business. It’ll be up to you to decide which scenario you prefer. Giving up a percentage of your business is not always desirable, but if an investor brings both money and skills to the table, it could be the best business move you’ll ever make.

Options are always available if you look for them and one such option is to reduce unnecessary spending to improve your cash flow. All businesses will leak money in areas that are not essential. The trick is to find those areas, plug the leaks, and see your spendable cash increase. An effective method of achieving this is to simply make a list of everything your business spends money on, then take the time to work out where spending can be cut without hampering business processes.

An emergency savings account is yet another way to avoid encountering cash flow problems in the first place. The fund should be reserved purely for business emergencies and replenished as soon as cash flow improves.

The Takeaway

When you have a business you have options when it comes to increasing or adding to your cash flow. If you find yourself stuck but have business assets such as a company vehicle, then a Business Pawn Loan will likely be the fastest, easiest, and most cost-effective solution to your cash flow.

Get in touch with the friendly staff at Cashify and learn how we can help with your business cash flow.