All businesses sometimes need outside financing. However, there may be compelling reasons why your company’s bank balance could be too low to apply for a small business loan. For instance, your money may be tied up in unpaid accounts receivables, your company may be growing faster than your resources can handle, or you may have made the mistake of mixing business and personal finances. Here are some options on how you can obtain business financing even if your company has no money in the bank.

Use Credit Cards

Although larger expenses such as rent and employee salaries require the amount of funding you obtain through loans, there are numerous smaller expenses that can be handled with business credit cards. Utilizing credit cards for business financing has the added advantage that if you are diligent in paying off the balances each month, you can improve your company’s credit rating. This will increase your chances of qualifying for a small business loan.

Take Advantage of Invoice Financing

If your company cash is tied up in unpaid accounts receivables, strengthen your cash flow by means of invoice financing. In this form of business financing, you receive a loan using your unpaid receivables as collateral. The lender offers you an advance of 80 to 90 percent of the value of the invoices, and you get the balance minus the financing fee when your clients pay their bills. Even companies with low cash flow or poor credit ratings can take advantage of this form of funding because the lender is more concerned with the creditworthiness of your customers.

Obtain Equipment Financing

Loans for purchasing equipment are easier to obtain than traditional business loans because financing companies use the equipment itself for collateral. Their primary concerns are how long your business has been in operation, your personal and business credit scores, and how your company plans to utilize the equipment.

For more advice on business financing with no money, contact Overhead Capital Ltd.