Every business owner knows that feeling – you need money fast for an unexpected expense or opportunity. Maybe it’s payroll before client payments arrive. Or a broken machine that can’t wait.
In those moments, getting quick financing can make all the difference. Fortunately, there are several options made for precisely these cash crunches.
Short-term loans, invoice financing, business lines of credit, and peer-to-peer lending can all get you funded in days, not weeks or months, like traditional loans.
Fast financing solutions are a lifeline when you can’t afford to put out fires slowly. This blog covers four accelerated ways to get the cash your business needs right now.
Ways To Get Finances Easily For Your Business
1. Short-Term Loans
Ever find yourself in a situation where your business needs money right away? Maybe you have to pay suppliers or cover unexpected costs. That’s where short-term loans can help.
These loans give you cash fast for those urgent money needs. The application is pretty straightforward – you just provide some basic info about your business. And you can often get approved and funded in just a day or two!
You don’t have to jump through tons of hoops. Short-term lenders know you need funds, so the process is simple and quick. Just be sure to pay it back on time when your cash crunch is over.
Let’s say you need funds immediately to cover payroll costs after a big customer doesn’t pay their bill on time. You can get benefit loans from direct lenders. It can give you the cash they need within 24 hours until that late payment comes through.
2. Business Line of Credit
Running a business can be unpredictable. Some months are busy. Others are slow. That’s why having a line of credit gives you access to cash whenever you need it.
With a line of credit, you get approved for a maximum amount. You can then withdraw some or all of those funds as needed.
It acts like a safety net for unexpected costs or opportunities. Need equipment repairs? Use your credit line. Want to stock up on inventory?
Once you pay back what you borrowed, that amount is available again. So you always have a pool of money easily accessible. Just apply and get approved once initially.
The application process is similar to a loan but more flexible. Lenders look at your business’s financials and credit history. With good qualifications, you’ll get approved for a sizable line of credit.
For many business owners, having a line of credit provides incredible peace of mind. Unexpected expenses won’t derail you when money is available on demand.
3. Invoice Financing
Are you always waiting to get paid by your customers? Does it take forever to get money for completed jobs?
Here’s how it works: You get cash upfront for any unpaid invoices. Once the customer finally pays their bill, the finance company gets that money instead of you. But you already got paid weeks or months earlier!
It’s like getting an instant advance on money you’ve already earned. No more waiting around to get paid for work you completed long ago. The finance folks just verify you did the job, then give you most of that invoice amount right away.
For businesses with lots of outstanding invoices, this cash flow boost is huge. You can cover expenses, pay employees, or invest in new opportunities immediately instead of treading water while customers dawdle. And it’s risk-free since you already did the work.
So, if you frequently invoice customers and hate the waiting game, invoice financing lets you get paid today for work you’ve already finished.
4. Peer-to-Peer Lending
Tired of long waits and piles of paperwork for a business loan? Peer-to-peer lending is a modern alternative that connects you directly with individual lenders. No banks are acting as middlemen to slow things down.
Here’s how it works: You submit a loan application online to a peer-lending platform. Your business profile is then reviewed and rated by the platform. Once approved, your loan gets listed for regular people to invest in.
Lenders browse the available loans and choose whether to fund all or part of yours. With many lenders pooling money together, your loan can be fully funded fast – often within just days or weeks!
The application itself is pretty straightforward. You’ll provide details on your business, financials, the loan purpose, and the proposed payback plan. Lenders appreciate transparency, so be upfront and specific.
Once funded, you’ll start making payments to cover the loan principal plus interest portions invested by each lender. The peer platform handles distributing those payments accordingly.
5. Cutting Costs and Liquidating Assets
When cash is desperately tight, making hard choices may be unavoidable. Cutting expenses to the bone and liquidating assets can generate quick funds – but only as an extreme, short-term bandage.
Start by thoroughly reviewing all business costs for ways to trim. Cancel unnecessary subscriptions and services. Renegotiate bills and payment plans. Limit inventory spending. Temporarily downsize staff through layoffs or furloughs. Make sacrifices across the board.
You can also consider selling off equipment, vehicles, inventory or other assets that are longer essential. While painful, liquidating those tied-up funds provides an influx of cash to cover pressing needs.
These drastic cost-cutting and liquidation measures buy you breathing room. However, you can’t be sustained indefinitely. Use that cash flow respite to pursue more sustainable financing options quickly. Apply for loans, work out payment plans with creditors, and seek new revenue streams.
Conclusion
No business owner wants a cash flow emergency. But the reality is that urgent money needs can pop up anytime – equipment breakdowns, supplier delays, unexpected bills.
The strategies covered here give you ways to quickly unlock cash if you need money now in the UK. Short-term loans, invoice financing, business lines of credit, and peer lending can all rapidly infuse your business with funds to manage crises.
Some, like invoice financing, give you money you’ve already earned through unpaid invoices. Others, like short-term loans, provide new influxes of capital quickly.
When comparing fast financing options, weigh aspects like cost, repayment timelines, and impacts on cash flow.
