How you can turn to outside help for your cash flow problems

Cash flow is the money that flows in and out of your business. It is important for businesses to try and maintain a positive cash flow, meaning they earn more money than they spend. When business owners are able to master the cash flow management of their company, they are setting themselves up for long-term financial success. 

However, cash flow management is a big problem for a lot of businesses, with one study citing that 61 percent of small businesses struggle with cash flow. To combat this struggle and balance out cash flow, owners can use many tactics and strategies, like working with heavy equipment financing companies.

We recommend the strategies listed below. 

1. Lease your equipment 

Your company needs equipment to function and expand, but instead of buying it outright, you can lease needed equipment from heavy equipment financing companies to save some money and increase your cash flow. If you buy new equipment or update outdated machines, opting to lease instead can lessen your short-term financial liability. It also saves you from having to update or sell the equipment in the future. Equipment leases also entitle you and your company to tax credits which can lessen your tax payments and help establish a more regular cash flow. 

2. Restructure your payments

Debt restructuring can take a lot of forms, but three of the most common involve extending your repayment terms, reducing your interest rate or remaining balance, or bringing a past-due account to current. Debt restructuring can help create a more balanced income for your business and stabilize withdrawals. Working with Equify, we can bring together an asset portfolio for you that will help to increase your company’s liquidity and improve your financial flexibility.

3. Borrow money before you need it 

The best time to solve a cash flow problem is before it happens. Opening up a line of credit like a revolver loan can give a business a resource to fall back on when they need it. A revolver loan can act as a lifeline for companies impacted by seasonality. This can also be especially useful for businesses that are just starting out. They can come across a lot of expenses early on and having a loan to pull money from continuously as the amount gets repaid can be very beneficial. 

4. Embrace technology 

Utilizing technological advances can speed up processes and make a big difference when it comes to a company’s bottom line. The right technology, combined with the right strategy like equipment financing, can increase efficiency. Equipment financing allows you to combat your cash flow problems while simultaneously creating a competitive advantage for your business with the newest technology. 

You don’t have to deal with cash flow problems on your own. When you find that you are looking at heavy equipment financing companies for options, contact a member of our team. Our team is here, ready to help.