At Current Financial, we understand the importance that cash, as well as cash flow, have when it comes to managing the daily operations of your business.
Working capital plays a pivotal role in ensuring you have the liquidity to cover overhead, payroll, as well as the cost of maintaining your equipment. During slow periods, an economic downturn, or quarters that may result in a higher financial demands on the business (the unexpected need to replace outdated equipment, for example), working capital loans can be a reliable way to bridge any financial gaps without worrying about the ability to cover your bottom line.
As a highly respected lender, Current Financial is well-versed in meeting the unique needs of today’s business owners. Below are a few insights regarding working capital loans to keep in mind if you are considering an upcoming expansion, development, or other aspects that may benefit from having increased cash flow available.
Working Capital Prevents Future Losses
Often, when companies do not have adequate working capital, they may be forced to take unfavourable pricing and terms which increases costs while reducing their overall profit both in the short and long-term. Insufficient cash flow also means companies tend to hold onto their older, less reliable, equipment. This is problematic for two predominant reasons:
1. Relying on outdated equipment runs a higher risk of costly delays due to breakdowns.
Regardless of how well you care for your fleet, heavy equipment is subject to continuous wear and tear on the job. Unscheduled downtime is always a possibility. Should your equipment fail, you not only face the cost of repair, but may also encounter a loss of revenue because of job delays and the inability to take on new work in the interim.
2. Your reputation is based on the service you provide; outdated equipment can hinder your clients’ perception.
The cost of equipment failures extends beyond repairs and delays. Your reputation directly ties into your ability to procure future contracts to increase your revenue. If your fleet lacks the pieces to compete for the right jobs, or has been known to cause problems on past projects, your business may face a dwindling pipeline and quite possibly affect your bottom line.
Both of these issues are an unfortunate reality for many owners who feel trapped by their financial circumstances. With proper working capital management assisted by the right type of financing, it can help ease the edge of a new purchase, allowing you to avoid these pitfalls while also protecting your day to day cash flow.
The Entrepreneur to Entrepreneur Difference
Current Financial was founded by entrepreneurs for entrepreneurs. Our goal is to ensure that owners have access to the cash flow and working capital their business needs to thrive. We know lengthy approval periods and complicated processes are far from ideal. To make financing more accessible for our clients, Current Financial provides quick, streamlined service that allows you focus on and in your business . With plenty of custom options available, our team of financial experts will help you find an equipment financing or working capital solution that perfectly suits the needs of your growing business.