When an opportunity comes knocking or unexpected expenses arise, it may seem intuitive to rely on personal credit options like credit cards. However, this can tie up your personal credit lines.
Establishing business credit is a best practice that will allow your organization to grow. Beacon's here to help!
How Can Business Credit Inject Cash Into My Company?
A strong and consistent cash flow is always ideal for any business. Cash allows you to face challenges, overcome setbacks, and take advantage of opportunities as they arise. While strong business profits are fundamental for any business operations, it doesn’t always mean you will have enough cash when it’s needed.
Maintaining strong cash liquidity is a key ingredient in every successful business. So how do you know which working capital loan is best for your situation? To assist in your analysis, Beacon Funding has created a side-by-side comparison of working capital loans, sale-leasebacks, and credit cards. Let’s review how each may help you successfully manage your business.
Working Capital
Are you getting opportunities to work with larger clients but unsure how to get the upfront cash to fund the project? Beacon Funding’s working capital loan is designed to help businesses take advantage when profit opportunities arise. Applicants who meet eligibility requirements may qualify for upfront cash up to $150,000.
Working capital loans allow you to put cash into your business without having to pledge any personal or business assets as collateral. You can use the funds to finance your company’s daily operations like payroll, supplies, repairs, or other bills while waiting for future income from your clients. When the right potential opportunity is in place, working capital can quickly help your business access the cash it needs to grow.
Working capital not only provides a chance to work on larger projects, it also can potentially provide momentum to expand your operations. A working capital loan can help fulfill contracts and provide opportunities to build positive business relationships with existing and new clients.
If your business could benefit from a cash injection, this article shows an in-depth look of the benefits of using working capital for your business.
Sale-Leaseback
When your business faces the need to offer a new service, find money for repairs, or expand to a new location, do you know how you’ll get the cash to invest in your business? If you own your equipment outright, a sale-leaseback can help you leverage its value to free up cash.
A sale-leaseback allows your business to tap into its equipment equity to generate cash flow. You can then use the cash to invest in your business. One of the real advantages of a sale-leaseback is being able to grow your business while continuing to use your sales leaseback equipment to make profits. This process also helps establish your business credit.
Sale-leaseback proceeds can help your business better handle unexpected expenses. Compared to other unsecured working capital loans, sale-leaseback financing is typically less expensive because it’s secured by a business asset and has less risk to the lender. In addition, sale-leaseback loans often have a 24-36 month term, allowing repayment of the loan to take place over a longer period, and puts less pressure on your business cash flow. Your business also remains agile while leaving other credit lines available for day-to-day expenses.
Leverage your business’ equipment equity and use the cash proceeds to expand. The amount of cash you receive from a sale-leaseback loan is typically determined by an equipment appraisal, condition report, and/or comparable analysis. How recent you purchased your equipment can also impact the amount of equity in your equipment.
- Purchases made less than 90 days ago
- May yield cash equal to 80-100% of the purchase price
- Purchases made more than 90 days ago
- May yield cash equal to 60-80% of the estimated market value
Compared to other unsecured cash loan options, a sale-leaseback may offer lower financing costs while allowing your business to retain use of the equipment and continue to generate revenue. Learn more about how Sale-Leaseback can inject cash into your business and keep you operating.
Beacon Funding’s Quick and Easy Financing
Many business owners assume getting working capital loans or sale-leaseback financing is a long, drawn-out process. Luckily, with Beacon Funding that isn’t the case! With an easy online application and a dedicated financing expert, we can help you get a quick and informed decision. In fact, you could get approved within 24 hours.
Talk with a financing expert at 847.897.2499 or contact us online to see which cash services option has the best ROI for your company.