Small businesses in Metro Detroit all have one thing in common… The need for consistent cash flow and they are not finding it available at local banks. The reality of cash for businesses today is that it’s getting harder and harder to come by, through traditional channels. Banks have become especially tight-fisted with loans or credit lines for these service-related companies without the benefit of something of equal or greater value to secure that loan or line against. All small business owners throughout every industry in Metro Detroit have a common need for customers to pay their bills on time, or get access to quick cash to pay expenses and take on new business when they don’t. If you want to grow your business, or even run it smoothly, you need to access that working capital and have a steady cash flow.
Many small business owners in cities like Ferndale, Royal Oak, Birmingham, Rochester, Southfield, Oak Park and Detroit, to name a few; experience times when the need arises for extra capital to meet a short-term cash flow hiccup or to bridge a slow season. To avoid financial challenges such as returned checks or overdrafts, it’s a good idea to leave a meaningful cash flow cushion in your business banking accounts. Nevertheless, there are still situations where you might not have enough capital on hand to cover unexpected expenses, hence the need for a temporary cash flow loan or other types of revenue based small business financing options.
Even if your small business is growing, you may find yourself needing extra cash to cover day-to-day expenses such as payroll, rent and inventory, or to pay for short-term projects that could grow your revenue in the long run. Uneven cash flow is one of the biggest challenges of small businesses throughout all industries. In a perfect world, you’d walk into your local Metro Detroit bank and walk out with a small business loan long before you wound up in a cash crunch. Well, those days are long gone and not coming back anytime soon, if at all. If you haven’t been in business at least two years, or lack perfect credit and collateral, chances are a traditional bank loan is never going to happen. In fact, most banks typically decline over 80% of all small business loan application. Bouncing from bank to bank and jumping through countless hoops for months on end typically turns into an exercise of frustration with no fruitful outcome. If you own a small business in Wixom, South Lyon, West Bloomfield, Farmington, Troy, or any other city throughout Metro Detroit; we can help!
What’s more, it’s not always challenging situations that require a temporary cash flow loan, it could also be an opportunity to purchase inventory at a discount or launch a needed marketing campaign. A temporary cash flow loan might not make sense for every business owner, but can be beneficial to generally healthy businesses that need access to temporary cash and have the means to repay the loan quickly over a short-period of time. These shorter-term loans may include a higher rate, but the speed and convenience of accessing the cash quickly may be worth the extra cost.
The nature of the need usually dictates the type of loan and the terms. A small business owner trying to meet a temporary cash flow need is really looking for a different type of financing than he or she would need to purchase a new warehouse or heavy piece of construction equipment. So long as revenues are expected to quickly bounce-back or increase, filling a short-term, or temporary, cash flow need will usually be best met by a short-term loan, these may include a line of credit or term loan of 12 months or less.
Possible Financing Needs that are Suited to a Small Business Cash Flow Loan - There are numerous reasons a Metro Detroit small business owner might choose to borrow, but here are some situations where a short-term cash flow loan could make the most sense:
Overcoming a short-term seasonal cash flow bump: Many seasonal businesses require a little extra capital to meet expenses during a down time or before the busy season starts.
Unexpected expenses: It’s not uncommon for businesses to experience unexpected expenses like a major plumbing problem or other maintenance issue they might not have the cash flow to cover.
New project start-up costs: Ramping up for a new project or a new customer sometimes requires additional resources that might exceed a business’ ability to cover with cash flow, but will be recouped in 60 or 90 days.
An opportunity to purchase inventory at a steep discount: A temporary cash flow loan is a good way to take advantage of an opportunity to purchase inventory that has the potential to increase profits.
Emergency repairs to business-critical equipment: When equipment necessary to the operation of your business fails, it likely doesn’t make sense to wait several weeks to start repairs. A temporary cash flow loan can be a good way to access capital to start those repairs right away.
Although short-term, temporary cash flow financing is not appropriate for every business financing need, it may be a good fit for situations like those mentioned above. At these times, most small business owners don’t have the luxury of weeks or months to find a business loan. Reality is, it could take anywhere from 10 to 100 hours just to compile all the documentation needed to qualify for a small business bank loan; that's assuming of course you have perfect credit, money for up front fees, and be wiling to put up your house as collateral. Small business funding companies like LVRG are often able to provide fast approval and have money in your bank account as quickly as within 24 hours.
Here are some other options to consider in your quest for small business capital -
Traditional line of credit:
The traditional line of credit is typically meant for experienced business owners with proven business models. Which makes sense since the credit maximums are sizable, the rates are lower, and the requirements demand higher credit scores and annual revenue reporting. If you’re a business owner taking out a line of credit, you’ll be spending that flexible cash on seasonal business expenses, payroll and other operational costs, insurance against emergencies and for sudden opportunities. In other words, as a capital cushion. It’s there for you when you need it.
Short-term line of credit:
The difference between a short-term line of credit and a traditional line of credit is more or less the same as the difference between your typical short-term loan and conventional bank or longer-term online loan Therefore, a short-term line of credit has a higher interest rate, lower credit maximum, faster turnaround time and looser application requirements. Unlike the traditional line of credit, the short-term line of credit is generally offered by alternative lenders rather than by banks. The point isn’t that one is better or worse, they appeal to different groups of business owners. Those with lower credit scores, smaller annual revenues, or newer businesses might only qualify for a short-term line of credit. And although the short-term line of credit tends to be more expensive, its value lies in giving younger small businesses the opportunity to maintain a flexible pool of capital. A small business line of credit provides flexibility that a regular business loan doesn’t. With a small business line of credit, you can borrow up to $100,000 and pay interest only on the money borrowed. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit. Need to manage cash flow? Buy inventory? Pay for a surprise expense? Then a business line of credit makes sense.
Invoice-backed line of credit:
The basic idea behind invoice financing (also called accounts receivable financing) is that, sometimes, customers take a long time to pay you back -- but you might not be able to wait. Instead of relying on short-term loans to cover operating costs, or digging into your savings, you could just get those invoices paid right away -- although you’ll have to shoulder the costs of that speed and efficiency. An invoice-backed line of credit follows the same logic. The value of your invoices determines your credit maximum, and you can draw capital as needed instead of relying on your customers to pay on time. And as your invoices increase, you’ll typically have access to more cash from the line of credit as well.
Business expansion loan:
Designed for business owners with a certain level of success and financial security, our newest funding product provides large-scale investment for growth at our most competitive rates ever. The Business Expansion Loan represents our commitment to long-term partnerships and offers advantages in speed, simplicity, and flexibility that traditional banks can't match
Working capital loan:
Built for healthy businesses with steady revenue, LVRG's Working Capital Loan is our simplest funding product yet. Money is automatically deducted from your business’s bank account on a daily basis. There are no checks to write, no payments to figure out, and absolutely no surprises.
Small business cash advance:
Unlike a loan, we provide you with business capital by purchasing a portion of your future receivables. Daily remittances are an agreed-upon percentage of your sales and are automatically deducted from your credit processor or bank account. Perfect for businesses with fluctuating revenue, the Merchant Cash Advance ensures that your remittances are always based on what you can afford, so you can grow, not just owe.
Revenue based financing:
Instead of a business being required to pay fixed interest payments like a typical bank loan, a revenue based loan is paid with a percentage of revenues. With loan amounts up to $2 Million dollars and funding in as little as 24 hours, it helps you grow your business and it does not saddle you down with long-term, highly encumbering debt.
small business short term loan:
Small business term loans can get you the money you need to bridge cash flow gaps, handle emergencies and unexpected expenses or take advantage of a business opportunity. Funding amounts from $15,000 to $250,000 and terms of 3-24 months, a term loan from LVRG is nightclub & bar capital for big business growth.
Fast And Flexible Funding
Our financing alternatives may also be the ideal solution for businesses with less than perfect credit. Best of all, you could have your funds in as little as little as 24 hours. The process is quick and easy and begins with an easy to complete application from you. We’ll take care of the rest. We have helped thousands of small business owners in cities such as Plymouth, Northville, Birmingham, Warren, Sterling Heights, Shelby Township and so many more…
Financing Options For All Types Of Small Businesses Throughout Metro Detroit. Including, but not limited to: Automotive • Barber Shops • Bars • Beauty Salons • Bike Shops • Bookstores • Breweries • Car Washes • Chiropractors • Clothing Stores • Construction • Craft Breweries • CrossFit Boxes • Day Spas • Dental Practices • Dentists • Electronics • Entertainment • Fast Food • Florist Shops • Franchises • Gift Shops • Grocers • Gyms • Hotels • Liquor Stores • Manufacturing Companies • Medical Practices • Microbreweries • Nail Salons • Pet Stores • Nightclubs • Pharmacies • Physicians • Pizza • Restaurants • Retail Businesses • Seasonal Businesses • Self Storage • Tanning Salons • Veterinary Practices • Yoga Studios and more...
We Know Small Business Finance
We understand the cash flow limitations that small business owners sometimes experience, including the unique challenges faced by seasonal business owners. We make temporary cash flow loans with the goal of helping small businesses grow. We offer lines of credit and cash flow loans that are based upon the overall health of your business rather than solely your personal credit score. Headquartered in Detroit's Historic Ford Building, LVRG Funding is a local funding firm dedicated to helping the local small business community throughout Metro Detroit thrive and grow. With a dedication to our clientele and a reputation for excellence, you'll understand why LVRG is such a respected member of Detroit's small business community. Give us a call today (855) 998-LVRG, we're here to help!