5 Ways To Make Ends Meet (When Profits Aren’t Happening)
At Red Payments, we have seen a fair share of companies that just have not been on the good side of luck. Through no fault of their own, profits had to grind to a halt. However, just because bad luck has struck doesn’t mean that your company can avoid paying bills. Workers need to get their checks, rent has to be paid, and insurance has to be kept up to date.
Most people who are faced with a profit loss point worry about how to make ends meet. Here are five ways to make things happen until you get back on your feet.
- Have insurance payouts cover it all. In the case of tragedy involving a loss that’s covered by insurance, your best bet is to have insurance payouts cover everything for the month. That being said, many insurance companies may be late in paying things out – which in turn can make this a gamble.
- Take out a loan. Most banks will not lend to companies who have just experienced losses, primarily because they don’t really lend to anyone. Moreover, the collateral terms may actually make bank loans a major liability to company owners.
- Use personal funds to keep the business going. This is a very good option, provided that you have the money to do so comfortably. Unfortunately, most people don’t have this option available to them. Businesses are costly, and keeping things afloat often costs tens of thousands of dollars – something most people don’t have lying around.
- Crowdfund it. Kickstarter and similar projects may seem promising, however, this also means you’re literally begging your customers for money. This will most likely not work out well for your company or its reputation.
- Use a merchant cash advance. Merchant cash advances allow you to get the money you need, when you need it, and also give you the flexibility your company needs in order to pay things off. Additionally, there’s no need for collateral and you can use the money as you see fit. With a 70% approval rate, this also happens to be your best bet in terms of probability.
Merchant cash advances often act as the lifesaver people need in order to save their company from certain doom. If you need a merchant cash advance, give us a call. We’re always happy to help!