Advantages of Same Day Cash for Small Businesses

“Cash is the king” : Checkout the same day cash benefits for your small business financial needs. Work with online vendors, get funding on the same day and improve the health of your small business.

We have heard this quite a lot. But it’s time we do some rework on these words. In today’s competitive business landscape, a small business owner becomes the king, if he has cash at the moment he needs.

If I have to speak in the language of business and finance then, you should have same day cash.

Running a business is not easy, especially if you are new in the market. You’ll have a lot of investments to make in your new business. Somethings might work and some may turn into a dead investment. Irrespective of how you are running, for the first few years you need to have a healthy cash reserve.

For a small business owner, the words ‘same day cash’ give the power to move forward without giving into the tough competition. However, for entrepreneurs or small business owners, it’s not possible to get this privilege through the traditional banks.

Statistics show that only a few percentages of small business owners manage to qualify the small business loans.

For the reason, most of them approach online lenders who offer services like check cashing, factoring, etc. and get cash easier in less time.

Some of the need to know facts……

Do you know why small businesses fail?

Because, they fail to access the required amount of cash at the right time. As per the analysis of 101 Startup Post-Mortems, 29% of small businesses fail due to insufficient cash.

 

 

The cash insufficiency may be due to many reasons. It is possible the businessman is following a bad finance model or has used too much of working capital or has taken too many loans, you never know.

In such cases, online lenders make the right choice. As it was explained before, there are a lot of benefits to having the cash at the right hour.

Here’s a list of those benefits.

  • Pay Bills & Make Time Critical Payments on Time

If you need raw materials for your business operations, you have to have a good relationship with your vendors and suppliers. That happens when you pay them on time.

It’s not just them, but every month you have to pay utility bills, payroll, etc. that you cannot avoid. Even if you negotiate and push the dates with your vendors, you cannot do the same for your business taxes.

If you fail to pay business taxes on time, you’ll face the penalty, which is just another burden for your business. With good cash flow, you can avoid all these and make payments on time and save yourself from overhead expenses.

  • Purchase Equipment & Update Inventory

The right equipment can give your small business enormous power to compete in the market. Often the requirement to update your equipment or machinery may pop up unexpectedly. Normally, at such situations, it will be a requirement and not an option.

That’s the same case for your inventory. If you are running an inventory-based business, you have to be always stock-ready or you’ll lose your customers.

When you have surplus cash flow, you can carry out such important things without obligations. You can strengthen your position in the market and keep moving with good growth.

  • You’ll easily handle the Working Capital Gap

The short-term financial health of your small business depends on your working capital.The concept of the working capital gap is simple. If your current liabilities are more than your current assets, then it is evident your chances of running smoother operations is spiraling down.Even running your day-to-day operations will be difficult.

However, you can manage any such complications or setbacks if you have sufficient cash inflow.

Suppose the deadline for paying your vendors/supplier is approaching and you have to pay then getting same day cash will help you immensely.

The Bottom Line

Basically, a businessman needs cash irrespective of whether he’s an industrialist or entrepreneur. While it’s easier for an industrialist to secure funds, a small business owner has to look for sources.

Even though traditional bank loans appear a suitable option, it takes a good amount of time and work before you can access the money. Also, there is no guarantee you can qualify one easily.

Getting same day cash is possible if you approach online lenders. They have numerous programs that are easy to qualify. You can meet all your immediate financial need without any hitch.