A Liquidity Crunch Doesn’t Have to Be a Crisis

Many businesses find themselves pushed to the brink of closing down not because they were failing to sell their valuable services and products, but instead because they are suffering from a liquidity crunch. This means there’s simply not enough money in the accounts to stay afloat. Perhaps a big customer failed to pay a bill, or costs for necessary inputs suddenly skyrocketed. Whatever the reason, when a liquidity crisis sets in, the troubled company lacks the cash on hand to keep things running. Often, it’s not because you’re doing a bad job managing your company. Instead, you’ve been hit by an overwhelming change in the market, environment, or your own internal operations.

Fundamentally, businesses suffering from liquidity crunches are often quite strong. They have customers, have developed value-added products and services, and have established themselves in the market. Yet accounting or strategic mistakes, as well as emergency situations, can push many companies out of business even in spite of their success. Luckily, with a business cash advance, you will be able to gain access to much needed money. This will allow you to keep your business up and running.

A business advance can providing you with the funds needed to keep your business afloat. This means you can continue to serve your customers, grow your brand, and dominate your market. But won’t borrowing money cause a future liquidity crunch?

Actually, perhaps the best part about a cash advance is the fact that it’s not a loan, and you’re not really borrowing money. Instead, we are purchasing a cut of your future sales. When customers make a purchase with their credit card, we will receive a part of that sale.

This allows for much more flexibility than a traditional loan. Often, companies that are suffering from a liquidity crisis take out a traditional loan, and then find that their situation is actually worse! Why? Fixed payments can be a major burden. Suffer a temporary or seasonal drop in sales? Too bad, make your payment. Fending off a tough competitor, running aggressive sales and price tactics? Income shrinking? Too bad, make your payment.

A cash advance loan will allow you to avoid this because payments aren’t fixed and instead are based on your sales. Have a bad month? They can happen to the best companies, but with a cash advance loan, your monthly payment is automatically adjusted. That’s because cash advances are based on a percent of your sales, not an inflexible monthly payment.

Further, businesses suffering from a liquidity crunch have to act fast. Markets are intensely competitive, and if you don’t act quickly, your competitors may try to overwhelm and put you out of  business. Meanwhile, the loan process with banks is often long and arduous. With a cash advance, however, the approval process often takes only a few days. This means you can quickly get the money you need and avoid a disastrous liquidity crunch.

Suffering a liquidity crunch yourself, or do you need money for another reason? If so, apply for a cash advance from Berkman Financial today and get your business back on track!

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