Cash Flow

Smart Business Financing Options to Improve Cash Flow

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Product development, market expansion, and recruitment of qualified talent made this year’s list of strategic initiatives, again. These and other challenges were labeled “priority” 18 months ago, yet there’s been little progress made toward hitting internal benchmarks in these areas. Your team is motivated, but without the funds to make it happen, growth is next to impossible. Money is tight due to slow receivables and increased operational expenses.

Without the funds to grow a business, long-term viability is in jeopardy. The underlying obstacle of each strategic initiative is the lack of cash flow. Fortunately, businesses have options for improving cash flow to support company goals.

Option 1: Apply for a Business Credit Card

Business credit cards can minimize cash flow gaps by covering everyday business expenses, such as office supplies, or larger purchases, such as airline tickets and hotel accommodations for business-related travel. Allow employees to use a credit card and avoid the hassles of reimbursement and manual tracking. Companies can use credit cards to further simplify expense management by designating individual credit limits for each authorized employee. This type of financing requires no collateral.

Besides bringing cash flow relief to an organization, business owners can choose a credit card based on their unique objectives. For example, York Traditions Bank offers a variety of chip-enhanced Business Credit Cards:

Visa® Business Platinum Card – This no annual fee, basic credit card allows business owners to enjoy a lower interest rate instead of rewards or cash back savings.

Visa® Business Cash Card – A no annual fee credit card that earns up to 3% cash back on business purchases with no earning limits.

Visa® Business Real Rewards Card – Earn 1.5 points for every $1 spent on eligible net purchases with no earning limits and no annual fee. Redeem earned points for gift cards, cash back, travel, or select merchandise.

Visa® Business Real Rewards Plus Card – Earn 3 points for every $1 spent on purchases in the category where your company spends the majority of available credit, e.g., office supplies, cellular services, etc. Earn 1.5 points for every $1 spent on all other eligible net purchases. There are no earning limits. Businesses can exchange points for gift cards, cash back, or select merchandise.

Option 2: Apply for a Business Term Loan

When your business requires a lump sum of cash to pay for large expenses, such as major capital improvements or technology system upgrades, a standard commercial loan can make it happen. York Traditions Bank offers a Business Term Loan, which is a type of commercial loan that can carry a fixed or variable interest rate. Flexible repayment terms often mirror the life of the asset.

Option 3: Apply for a Business Line of Credit

Meet your working capital needs with a business line of credit. Unlike a Business Term Loan, borrowers access funds from a Business Line of Credit as needed, up to the approved credit limit. While loan funds are not dispersed in one lump sum, interest payments are only made on the amount borrowed. Businesses often use a line of credit to meet short-term cash flow needs. Once the need is satisfied, the principal amount is also repaid, freeing up the line of credit for future borrowing.

Strengthen the financial position of your business by utilizing credit options from York Traditions Bank. With adequate cash flow, you can achieve your business goals as scheduled. Not sure which financing solution will best meet your business needs? Contact our team of experienced banking professionals for assistance today!

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