(NC)-As a business expands, keeping the cash flow healthy can be challenging. Short and long term financing options, which can provide financial relief for various business needs, may be one way to help mitigate concerns.
"Cash flow can be the fuel to your business growth," says Rina Pillitteri, national director, Small Business, RBC Royal Bank. "It's important to first determine your needs and find the right financing options that match those needs."
Short term financing options can help to pay suppliers, increase inventory and cover expenses when you may not have sufficient cash on hand. Options to consider include:
• Overdraft - Even the best run business can find itself short of funds from time to time. Overdraft can extend your cash resources and protect your business reputation and credit rating.
• Operating line of credit - An operating line of credit can help provide the funding when you need it and you can pay it back when you have surplus cash.
• Visa business credit card - When you experience higher than normal sales, a Visa business card can allow you to purchase the inventory now, meet your clients' demands and pay off the debt when your client pays you.
Long-term financing options can help you invest in overall improvements to your business. Options to consider include:
• Leasing - Leasing helps to finance your business equipment needs. By structuring the lease to match the useful life of the asset you're purchasing, you'll be able to preserve your cash and working capital.
• Term loan - A term loan is a cost-effective option to help support your business growth plans. It allows you to accurately forecast your monthly cash flow, through regular monthly payments.
For more information call 1-800-ROYAL-20 (769-2520); to find valuable Small Business tips and resources online, please visit www.rbcroyalbank.com/business/resources
- News Canada