This guest post is brought to you by Kabbage
1) Buying Inventory
Having cash to purchase new inventory is kind of a no brainer. However, this can sometimes be difficult for a small business. If you are relying on sales to re-invest back into your business, you could put yourself in a rather tight predicament. Slower sales can cause a strain on your personal wallet and using your personal credit to finance your business can make things tight; this is why having a solid source of funding for your business is key. You want to be able to purchase inventory at great deals. This helps you grow your business by allowing you to offer better prices to your customers and that will keep them coming back. You don't want to miss out on purchasing inventory because you don’t have the funds.
2) Securing Better Terms with Vendors
You can often get 30-, 60-, or even 90-day terms with vendors, depending on your history and relationship. If you have the money to pay your vendors on time, you will be able to negotiate better terms. This will help you build on these relationships and could also help with future vendors. People talk. Working capital can be essential when making deals with vendors. You won’t have to worry about waiting for your inventory to sell. You can pay your vendors on time with working capital and then have the cash from your inventory sales go to other areas of your business as needed.
3) Cash Flow
If you’re relying solely on your sales revenue to pay for new inventory, vendors, and other services you could run into issues if your sales slow down. Having working capital on hand to help manage your cash flow can help you stay focused on expanding your business rather than worrying about which vendor to pay first.
Marketing your small business can be overwhelming and expensive. It is understandable for a small business to think that they don't have the funds available to properly market their businesses. However, working capital can be a great marketing investment. If done correctly, the money you use for these initiatives can bring more traffic to your store and in turn more profits.
5) Hiring Help
You may have spikes in traffic during your high sales seasons where you could use an extra hand for shipping out those orders, receiving, stocking, or even listing new items. Working capital can come in handy, especially when it comes to hiring help.
How Kabbage can help
Finding ways to finance your small business can be tough in this economy. Banks have made it difficult for small businesses to get advances, and there are not a lot of other options out there to choose from. Leveraging the revenue you make from sales may work for you for the short term, but having working capital handy to help with larger orders, bills, or even to secure better terms with vendors, can be the key to growing your business over the long haul.
One new way to get funding for your business is Kabbage. Kabbage provides fast funding to small businesses without all the hassle of paperwork and formal meetings. You can sign up and have cash in your PayPal account within 7 minutes.
There’s no obligation to take the funds made available. It is an easy and modern solution for small businesses to help take their businesses to the next level.
To learn more about Kabbage please visit www.kabbage.com