My answer to Quora:
Access to capital can help small businesses ensure a positive cash flow by securing financing at better terms and getting that financing when it's needed to take advantage of immediate business opportunities. Conversely, businesses with poor credit ratings may face higher credit card and interest rates from lenders. Indeed, insufficient or delayed financing is the second-most-common reason for business failure, reports the SBA.
Access to capital can also help small businesses avoid cash shortfalls, whether they’re due to slow business, natural disasters or daily operations and to stay afloat when times are tough. Enough income to sustain a company on a day to day basis is an important part of keeping a business going, but in many cases, it's not enough. Appropriate cash flow goes beyond the bare minimum; there's significant value in having the funds available to take advantage of special opportunities, whether that means purchasing additional inventory for a special purchase order, or getting in on the ground floor of a profitable investment. With capital, every opportunity is available.
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.
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