Staring out at the financial landscape is like viewing the Shadow Lands from The Lion King. For most businesses, entering a bank to gain finance is akin to wading through that elephant’s graveyard, complete with a howling hyena of a bank manager at the end of your journey.
And those dark times for your business can creep up on you as quickly as the successes, and finding finance to lighten your load is positively nightmarish from banks.
Indeed, many businesses have entirely lost confidence in their chances of getting even a small loan from any of the major banking institutions, despite the steady economic recovery of the past few years.
But where does that leave you, a struggling entrepreneur with a business tumbling nearer to the dark precipice of bankruptcy? For a start, you could try a few of these alternatives.
Put invoices to good use
Without payment, an invoice is essentially a glorified IOU, cluttering your office with the promise of money you don’t have.
If you’re a well-established business, you can put those receipts to good use via invoice discounting. Essentially, invoice discounting companies will take those pink slips off your hands for about 80 per cent of their value, and collect the cash themselves.
It’s the perfect way for a struggling business to gain cash fast, and could prove to be the solution that keeps you afloat.
Get the government in on the job
The good ol’ government is always willing to invest in businesses they think will boost the overall economy, providing grants or loans to entrepreneurs who they believe have the mettle for success.
This method does, however, mean you might have to jump through a few hoops to satisfy the remit of the government bodies you’re trying to impress. But if you’re willing to be flexible and make some compromises, this could be the perfect way to give your company a major cash injection.
Although it can be difficult to give control of your business to someone else, finding a partner could be the ideal way to gain an extra helping of capital.
More than this, having a peer in your business gives you an effective sounding board for ideas, meaning you don’t have to make major financial decisions on your own.
But if you want to keep the entrepreneurial reins all to yourself, find a silent partner instead. That way, you’ll have extra cash but won’t find have to wrangle with dissenting voices.