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Business Finance Loans

How Mom and Pops Can Manage Cash Flow with Business Financing

Mar 27, 2018

Since its founding in 2008, Reliant Funding has funded well over $1 billion to American small businesses, a majority of those being family owned and operated. The very existence of these businesses has an enormous impact on our economy. Mom and Pop businesses are powerful. They generate 62 percent of the country’s employment and account for 78 percent of all new job creation. We believe these businesses are vital to our country’s success. The millions of hardworking families who own and nurture small business, certainly deserve a day of recognition: National Mom and Pop Business Owners Day. We salute you!

Family owned and operated businesses, like all small businesses, are vulnerable to cash flow issues due to the limitations of the traditional bank funding routes. Owners face their own set of challenges when they need and apply for business financing as many do not have emergency funds in place. Small businesses aren’t empowered by the traditional banking processes. Instead, they’re limited or shut down by the requirements. Simply put, cash flow is king in small business. It’s one of the most important components of success and longevity of any small business operation.

While we believe all businesses are bankable, big banks only approve small businesses at a rate of 23%.  That’s why Reliant exists, to fill that financial gap. Managing your cash flow is critical, business financing options can help you capitalize on growth opportunities and properly deal with the unexpected. There are countless ways to use small business financing to get ahead:

Use it to Handle an Emergency

The inability to pay your staff, needing merchandise with no cash flow to do it, slow paying customers or dealing with natural disasters affecting operations are all emergency situations. If you find yourself in a cash flow crisis, business financing can help you can turn it around before it becomes detrimental to the business. You can use it however you see fit:

  • To get through a slow season
  • Slow accounts receivables
  • Sudden equipment breakdown
  • Pay off taxes

Take Advantage of Opportunities to Get Ahead

If you aren’t facing a crisis with your business, you may have opportunities to get ahead. Having the cash flow to capitalize on discounts or streamlining processes is a strategic way to move ahead. A few instances include:

  • Investing in equipment that increases your production speed and capabilities
  • Purchase order negotiations (up-front discounts, etc.)
  • Product manufacturing costs
  • Computer programs (scheduling, inventory, etc.) that cut labor costs

Marketing

Marketing is an important but often overlooked challenge for small businesses. The general lack of resources (budget/people/time) keeps owners from employing any kind of impactful strategy. Sales are dependent on creating visibility and generating demand for your product or services. If you are ready to step up your efforts, extra working capital can help you deliver a return on any marketing investment.

We work with many financial partners to create a variety of customizable financing options for Mom and Pop businesses just like yours. Based on the needs and finances of the business, we will work together to find a number and plan that works best for you. Have questions? We are always here to help.

SINCE 2008, WE'VE CHAMPIONED SMALL BUSINESS:

$1,698,641,569 dollars funded