Business expenses can’t wait. The difficulty comes in paying for them. Your business might not have the cash flow to make certain payments or have reserve funds ready to use.

To stick to your budget and keep your personal and business finances safe, here’s how to handle urgent business expenses the next time you’re in a tight spot.

Get a Business Loan

If you don’t already have a business loan and urgent business expenses require money, apply for one. Banks and credit unions will help expedite funding so large expenses can be covered without worry.

Put It on a Company Credit Card

Depending on the size of the expenses, some can be safely put on a credit card and repaid before interest kicks in. However, this is an important decision that you must weigh carefully. Other ways to pay for these expenses may offer better terms and rates.

Sell Off Assets

You may have assets you can sell at a bargain to gain some quick cash that can be diverted to urgent expenses. This may include access to equipment, vehicles, materials, and more. Consider what you may not use that could be resold to generate revenue.

Set Up Payday Loans

Payday loans for businesses can provide fast cash flow. They’re all based on cash flow and income. If your company is making money and can demonstrate it’s bringing in funds regularly, online payday loans can provide all you need to cover immediate expenses.

Look to an Angel Investor

Connecting with an angel investor, they can provide you with money in exchange for a royalty, a percentage of your business, or something else negotiated The downside to this is that you’re giving away a part of your business and potentially permanently.

Connect with a Venture Capitalist

While angel investors are rich individuals who want to invest their own money in businesses to reap profits, venture capitalists invest money on behalf of others. A business with strong revenues may meet with venture capitalists and arrange a deal. It requires, once again, giving away a part of your business.

Pull from Your Business Emergency Fund

Every business should have an emergency fund to pull from when needed to cover urgent expenses. If you can’t pull from an emergency fund this time, set one up for the next time something unexpected comes around.

Use Your Personal Funds

You may have personal funds in your savings, investments, or another funding source you can use to pay for your business expenses. This complicates accounting, puts your finances at risk, and is not recommended.

Leverage Your Personal Finances

You may be able to leverage your finances to get a line of credit, additional credit cards, or loans that you can transfer over to pay for business costs. This puts you at unnecessary risk. Small business owners must protect themselves.

Reach Out to Friends and Family

Though it puts the relationship at risk, you may contact a family member or friend. As many as one-third of all businesses raise money from friends and family to support their business, especially early on as startups.

Prepay When You Can

When you have cash flow and funds available, especially if business expenses are routine, it is a good idea to prepay whenever you can. You may get a volume discount or save money this way. At the very least, you will save an expense you won’t have to worry about later.

Generate More Sales

An easy way for a business to make more money is by increasing sales and revenue. This may involve offering discounts or investing more time and effort in finding a business. However, even in the short term, more sales will help fund certain expenses.

Apply for Business Grants and Funding

There are dozens of government programs at the federal and provincial levels that offer grants and business funding. Look at what is available to you for a specific set of business expenses. Apply for every business grant you qualify for.

Try Crowdfunding

Set up a business page. Create promotional materials. Give your campaign a defined purpose, such as developing an innovative product or funding an event. Use crowdfunding to raise money to cover emergency and urgent expenses for your small business.

Look to Peer-To-Peer Lenders

Peer-to-peer lending has become more popular, helping individuals and businesses connect to funding opportunities. For this to work, you must present a strong case for your business. From there, the interest rate and terms that are most suitable for you and your lender are determined.

Published by HOLR Magazine.

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