So many business owners are apt to wait until their cash flow is all but diminished before applying for any sort of business funding. Sure, your profits may be up, but that doesn't necessarily mean you have the money on hand to cover your day to day expenses. This is cash flow, and if you wait until it's essentially gone, then you're putting your business into a problematic position.
Anticipation is key here. The best time to look into getting some working capital maybe when you don't actually need it. You should be able to predict fairly well your cash flow trends. Are there certain times and/or seasons for example when you can expect money to dry up? If this is the case, apply for funding ahead of this anticipated slower time and this way you won't be frantically working to scrounge up available cash.
Failing to Leave Yourself a Financial Cushion
Another scenario may involve a major purchase. Let's say for instance that you desperately need a new piece of equipment in order to conduct your business. You purchase this, but at the same time, you know that money from invoices won't be coming in for another 40-60 days. This could put you in a definite bind. You really do need to be able to look ahead and have the foresight to understand when your business is, in fact, going to require an infusion of extra cash.
At First Union, we offer all types of lending products to help small businesses like yours get through tougher times, go through an expansion project, even hire on new staff. Turnaround times, from application to funding, can be as little as a couple of days. We would love to discuss your cash flow needs so that you can continue on your path to success. Call today!