The routine expenses of running a business are what comprise the working capital costs. The three main aspects of working capital are cash management, receivables management and inventory management. You need good cash management to manage your cost of purchases, payroll, contingency or urgent expenses and speculative expenses relating to the cost of grabbing opportunities that crop up unexpectedly. Then you need to manage your receivables really well because you will always have to tackle the time gap between sale of goods/delivery of services and payment by your debtors. When it comes to inventory management, there are ordering, purchasing and carrying costs that you must manage very well.
It is difficult to sustain operations without steady funding
When you are running a business of any size, you need to have a last penny count of the cost of running your operations. Most small businesses struggle to do that partly because you lack the experience of controlling cost in that manner and partly because you cannot afford the expert talent to manage your costing. You will need business funding solutions to deal with that.
Alternative business funding is the new ‘holy grail’ for small businesses when it comes to managing shortfall in operational cost. Your small business has unique funding requirements that a lender must be able to appreciate and the alternative lenders are committed to doing just that. After all, resolving your liquidity challenges is an opportunity for them.
No funding for small businesses from traditional lenders
It would be truly great if all businesses can run their operations and fund their growth with their own cash surplus. However, that is a far cry for most businesses irrespective of size but big businesses do manage to get US business funding to meet shortfalls in their operational cost. Unfortunately, small businesses are denied any funding by the traditional lenders.
How would a small business get working capital funding to meet shortfalls in its operational cost? Just contact the alternative sources of funding, whose services are designed precisely for small businesses. Unlike traditional lenders, these alternative lenders are way more efficient in their operations and they approve and release the credit in quick time.
Fast and easy approvals for your funding by alternative lenders
When you apply for business funding to an alternative lender you won’t be asked to produce any collateral to secure the debt and neither will your credit history be checked. To assess your eligibility for funding, the lenders will ask for your bank account statement of the last 2-3 years basically to see if your cash flow is sufficient for you to repay the loan.
The approach of alternative lenders towards funding is oriented towards growth and that is the main reason for them to offer unsecured credit without considering collateral or credit history. You will feel encouraged to apply for funding to such lenders because of the confidence they show in your ability to repay the loan once they are satisfied with your cash flow situation.