Red Flags That Your Business may need Financial Help
When you’re a business owner that is constantly in the thicket of day to day operations, a financial struggle can just seem like the average “grind.” Your busy schedule can easily cause you to avoid the red flags that mean your business is on the road to a total loss.
Here are a few major signs that your company is falling onto financial hard times and what you can do to bring your brand out of the money pit.
Outstanding Accounts Receivable
Even if you pay your bills on-time, if your accounts receivable is full of outstanding invoices, you have a real problem on your hands. Left ignored, the cash will eventually run out, and your business will be left with some hard choices to make.
No invoice should go unpaid for 30, 60 and 90 days. If you notice that this has become a pattern with your business, it may be time to speak with a factoring company and find some more reliable clients.
Not Much Available Cash
Money is everything for progress in any industry. Unfortunately, without cash on-hand, you may not have enough money to comfortably cover the basics like bills and payroll (more on that later).
Your goal as a business shouldn’t be to remain stagnant but to grow and eventually become a prime leader in your industry. Without available funds, your business is unable to:
- Purchase new equipment
- Expand business to new locations
- Hire new employees
- Effectively market your services
Zero Access to Financing
Is your business’ credit line maxed out? Does your company have nowhere to turn to when times truly become financially troubling? This is a huge red flag that you are in financial trouble. Your business should always have a financial backup plan. However, if you have poor credit and can’t gain access to traditional lenders, once the money runs out, your time could be up.
Payroll is Missed Every Now and Then
Your employees work hard to ensure that their fiscal needs are met on payday. Payroll is nothing that should ever be late or missed by any means. If you find that you have to “push back” payments by a day or two, this signals that you’re in dangerous territory as a business owner.
Timely payroll keeps trust intact and morale high. Once you’ve betrayed your trust with a bounced check or missed pay date, expect high turnover and work ethic to decline, leading to reduced sales that your business needs during financial hardships.
Secure the future of your business with Invoice Factoring through Goodman Capital Finance
Yes, all of these problems signal a foreboding future for your business. However, there is a way to earn the cash you need to bring your business back up to fiscal speed.
Invoice factoring allows you to turn your unpaid invoices into cash. With the help of the financial experts of Goodman Capital Finance, you can receive up to 90 percent of your invoice amount in 24-hours. Trust us to help you recover the debts you’re owed. Contact us today to start the factoring process.