If you have ever been to a fair or carnival then you know how horrifying the experience can be. Across the pond and many years ago, I decided to take the family to a fair. There’s something so heart-racing about the fair, and I suspect it’s the rapidly-assembled machinery more than it is the prospect of good, clean fun. On this evening, we got to lose at carnival games, we realized we were too old to enjoy being spun around very quickly, and we ate our share of overpriced carnival food.
Overall it was a good time. The rickety thrill rides didn’t fall off their tracks. No creepy clowns jumped out at us, and the fun house maze was spooky but navigable. We went to the carnival knowing that we would have to spend money in order to have fun. It’s like the old saying that entrepreneurs get told: you have to spend money to make money. We came out of the experience with lighter pockets but fuller memories. Each ticket purchased was an investment.
When business owners think of their investments, inventory, production costs, and other expenses the amount can pile up. It may require that you make four sales a month in order to make a profit. If you don’t meet those numbers then you will have a loss on your books. Having a loss doesn’t mean you did something wrong, but it will be concerning for any business owner. A short-term loss is manageable, but longer-term losses could require revisiting your investments and making cuts there.
A loss for any small business is going to hurt. Unfortunately, losses are widespread right now and it won’t be getting better any time soon. Losses on your profit and loss statement can affect whether or not your business can qualify for bank financing. Currently, banks are less likely to extend more credit to small businesses, so how are you supposed to mitigate your losses?
Invoice Factoring to Prevent Loss
Invoice factoring is a great tool in this scenario! At Eagle Business Credit, we aren’t looking for a high credit score, a perfectly growing business, or a business that has an outstanding P&L statement. We understand that all businesses have their ups and downs. We are a small business ourselves! So, it doesn’t prevent a company from access to our financing services. We are happy to fund businesses that are going through rocky times. Our financing can help create some stability and free up the cash to increase sales and even grow your business.
We believe in what we do here. We have seen factoring services course-correct a business and prevent the business from failing. We review applications personally instead of relying on an algorithm, and we won’t play with your time. Our financing services are consistently reliable and available during a time when banks are lending less. Even if you have a loss on your books, apply to factoring if you need stronger cash flow. We can help.