sales prospecting process

Increase your cash flow with an updated sales prospecting process

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If you’re trying to increase your business’s cash flow, start by reviewing your sales prospecting process.

sales prospecting process

Prospecting, relationships, business growth and cash flow are all closely connected in the relationship economy. 

It’s common knowledge that having meaningful customer relationships can support business growth by generating consistent sales and cultivating loyal customers. In turn, this can create positive cash flow for your business.

Prospecting can also impact your cash flow. If your team has a system to consistently bring qualified prospects into your sales pipeline, you can expect to reliably bring in new customers, which will increase your cash flow. However, if your prospecting process is outdated, you may see your cash flow suffer.

Redefine your ideal prospect for the relationship economy

The first step for finding qualified prospects is defining who they are. This ensures that you and your sales representatives know what you’re looking for in a potential client. By developing a clear set of criteria, you can help your sales reps streamline their efforts and focus their time on prospects who are likely to convert.

Generally speaking, an ideal prospect is someone who sees value in your offer, has the budget to pay, and stands to benefit from the results your business can confidently deliver. 

If you haven’t reviewed your ideal prospect criteria since the pandemic, now is the time to do so. As the relationship economy becomes more prevalent than ever, you may find that who your ideal prospect is and how they want to be sold to has changed.

Begin by examining your historical customer data and consider these questions:

  • Which business or industry has the highest conversion rate? 
  • Which customers have the shortest sales cycles?
  • What are some common attributes ideal customers share? (This may include things like their industry, job title, location, etc.)
  • Which customers have the highest lifetime order value?

By analyzing this data, you’ll gain a clear profile of your ideal prospect’s priorities, buying habits and patterns. You’ll also learn how (or if) the pandemic has changed them.

update your sales process

Update your sales pitch and marketing materials

The next step is to review and update your sales pitch and marketing materials. In today’s relationship economy, buyers are savvier than ever before — and they are demanding a more personal and relationship-driven sales approach.

The pandemic has also increased the demand for virtual meetings, sales videos and easily accessible digital marketing materials.

Every business needs to consider how they can cultivate meaningful relationships with their customers. Customers who enjoy their experience and feel valued will become repeat patrons and help create steady cash flow for your company by telling others about their great experience.

Prospecting and selling need to go beyond a transactional focus. It is now about creating a true feeling of connection in the sales cycle, being responsive and following through when it matters. Though this shift can create a longer sales cycle, by focusing on these pillars you can strengthen bonds and, ultimately, improve your prospecting results.

Don’t let your working capital hold you back

It’s critical that your working capital can support how your prospects want to be sold to, and what your customers expect of ongoing service levels. For example, in today’s economy, offering flexible payment terms can go a long way in establishing a more personalized experience for each customer, or you may need to fund a new digital sales strategy to help support your updated sales prospecting process.

In the case of Ray Bowman, owner of tree clearing company Rayzor Edge Tree Service and a client of Liquid Capital, he discovered that he needed to balance his corporate client’s needs for longer invoice payment terms with his need to consistently pay his contractors. This led him to seek funding beyond traditional bank loans.

By working with Liquid Capital, Bowman leveraged invoice factoring to help strengthen his relationships with his subcontractors, meet his corporate clients’ needs and have the cash flow to support his working capital needs.

Create repeat business

In the relationship economy, every business needs to consider how they can cultivate meaningful relationships with their customers.

Customers who enjoy their experience and feel valued will become repeat patrons and help create steady cash flow. And it all begins with making sure your sales team is doubling down on creating long-term relationships with customers from the moment they become a prospect.

Up next: How to improve your team’s sales prospecting skills

business grants

How to access funding through business grants

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Exploring how to access business grants, with examples of interesting grant options in the U.S. and Canada.

business grants

As a business owner, your demand for working capital can be met through multiple funding solutions. One of these routes to accessing capital is through business grants.

Grants exist with local governments as well as private foundations. They can include cash grants, equity grants, interest-free loans, microfinancing and more, and many don’t need to be paid back, making it an attractive option. However, competition for grants can be high, and the grant writing process can be quite intensive. So it’s important to have enough time to focus on submitting a solid application—and you may want to even get expert help with your submission.

Grants to help growing businesses

There are so many different grants available. However, some are only available in specific regions, for certain industries or types of businesses. Be sure to read the details about each grant to confirm if your business will qualify.

Here are interesting grants and associations as an example of what’s out there:

U.S. Business Grants

Black Founder Grant

The Black Founder Startup Grant program provides grants of up to $10,000 to black or multiracial women and non-binary businesspeople. The program accepts new applicants on an ongoing basis and is open to any entrepreneur with a legally registered business.

National Association for the Self-Employed (NASE) Growth Grants

Since 2006, the NASE has distributed more than $1,000,000 in new funding to its members. They have grants to assist with training, education marketing and more. Note that you must be a member for 90 days before you are able to apply.

FedEx Small Business Grant Startup

FedEx offers grants through contests that are designed to help support small businesses around the United States. FedEx also has a lot of great resources for small businesses to utilize throughout their startup journey.

SBIR.gov

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are programs that encourage small businesses to engage in Research and Development with the potential for commercialization. SBIR and STTR offer grant money for businesses through their awards program.

Small business grants and applications

Canadian Business Grants

Government of Canada

A good place to start learning more about the grant process and details you’ll need to pull together is the Government of Canada Business grants and financing portal. From their Business Benefits Finder, you’ll see what opportunities exist for your organization.

Innovate BC Hiring, Mentorship and Research Grants

This provincial organization offers multiple grants to help growing businesses including:

  • Hiring grants for hiring young people to subsidize their salaries and build up the pool of talent.
  • Mentorship grants for small and medium-sized tech companies to help grow their businesses.
  • Research grants to commercialize a special project.

Local Chambers of Commerce

Whether you’re already a member of a local Chamber of Commerce or not, they may provide opportunities to apply for grants. For example, The Winnipeg Chamber of Commerce offers grants of up to $5,000 “to help small businesses offset the cost of expenses to reopen safely or adopt digital technologies to move more of their business online.”

How do I find more grants?

There are even more funding opportunities out there. However, it can be difficult to find these grants on your own. So how do you go about finding what’s available and if you qualify?

Thankfully, there are great resources online that make it easier for entrepreneurs to access all the information they need to know when it comes to business grants. Here are some great places you can get started:

Funding to supplement grants

How will you know if your business qualifies for grants? How much funding are you eligible for from a grant program? And how does the grant writing process work?

These are all questions that come up when small businesses consider applying for grants.

Fortunately, there are some great resources online that make it easier for entrepreneurs to access all the information they need to know when it comes to business grants. Hopefully, this helps you get started on the journey to accessing the right funding to grow your business.

If you’re looking for additional funding to supplement grants for your business, we have options. Please reach out to us and we’ll explain how our funding such as invoice factoring can help you.

top articles for business professionals

Year in review 2021: Our top articles for business professionals

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From creating long-lasting business relationships to harnessing the benefits of invoice factoring and alternative funding, these are some of our top articles for business professionals from the past year.

top articles for business professionals

As another year wraps up, you may be planning to take advantage of new opportunities that lie ahead in 2022. To help tackle the road ahead, you can learn from the journey to date.

This year, some of our most popular articles centered around building a strong team and lasting relationships that are the foundation of a true partnership. In addition, articles about finding ways to face financial obstacles head-on, preparing to take advantage of opportunities when they present themselves unexpectedly, and harnessing the many benefits of alternative funding were popular.

These topics have been the building blocks for resilience and adaptability, which are essential qualities for successful companies during uncertain times. And with a year filled with many ups and downs, being a step ahead with enough cash flow has been the name of the game. 

Now, keep reading for our 2021 list of top articles for business professionals!

 

Future of Business Funding

What is the future of business funding?

The pandemic has changed the way businesses operate — including the finance industry. Some financial institutions have become more conscious of consumers and businesses during the past year and have pivoted to offer greater flexibility, support and leniency to borrowers. However, other businesses have experienced the opposite — with greater challenges accessing capital.

Read more now
pinpoint amazing funding companies

How do you pinpoint amazing funding companies? 

What do you look for in a lender? You’ll take the obvious into account — such as their ability to provide capital. But how often do you establish new relationships based on a human-centric approach? If you’re looking for a true funding partner, look for these characteristics.

Read more now
turn prospects into customers

7 ways to turn prospects into customers

Developing lasting relationships — and ecstatic clients — is the holy grail of small and medium-sized businesses. While building a customer base from scratch is hard, with the right strategies, you can turn a snowball of strangers into an avalanche of loyal clients pretty quickly.

Read more now
CFOs can fend off uncertainty

CFOs can fend off uncertainty

With so much instability, economic and financial challenges influenced by an ongoing pandemic, it can feel downright impossible to lead a business. At the same time, some leaders have unlocked secrets to persevering, regardless of the many challenges created in the past year. Here’s how C-levels can adapt and lead their teams to the other side.

Read more now
Medal-winning ways to leverage invoice factoring

Medal-winning ways to leverage invoice factoring

Surviving the past year has been like winning an Olympic gold medal for most business owners. Even under normal circumstances, running a company is like running a marathon, but it takes another level of determination, grit, perseverance and nerves of steel during an international health crisis. Here’s how to leverage factoring to stand on top of the business podium.

Read more now
When bank loans and early payment discounts let you down

When bank loans and early payment discounts let you down

When a business is experiencing a lack of sufficient cash flow, taking out a bank loan and offering clients early payment discounts are two common tactics used to fill the gaps. But there’s another solution that could be a better strategic decision, and it can provide even more than just cash flow…

Read more now

If you or your client are looking for new ways to fund business growth, contact your Liquid Capital Principal today!

business plan

Developing a business plan for your new venture

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Do you have an idea to evolve your business or maybe even starting something brand new? Turning your vision into a reality requires developing a business plan. Here’s how to get started.

developing a business plan
Image via Unsplash

Many people are waiting for all the stars to align before taking the next leap in their business or starting an entirely  new company. Because of that hesitation, they never get around to fulfilling their dreams. But by getting rolling on developing your business plan, you can turn your dream into a reality faster. 

In 2022, industries will continue to shift in new ways, and now may be the perfect time to take your project to the next level. To get started, it’s important to know what is involved in venturing into new territory or starting a business, and that’s where a business plan comes in. 

Why is developing a business plan so important?

A business plan is a formal document that provides the roadmap for your company. It can help you navigate through tough decisions and can help you manage any challenges that may come your way. It will also help you stay focused on your end goal as you grow your business. And if you are starting a completely new venture, it’s essential to have one in place before applying for funding or securing partners. 

To create a great business plan — whether for your startup, scaling business or mature enterprise — you’ll want to start with these steps:

Step One: Define your business goals

The first step in creating your business plan is determining the direction of your business (if you’re evolving into new territory) or what kind of company you want to start — along with your overall goals. For example, will you run a physical store, or do you prefer an online business? Do you want to sell a specific product or focus on services? Maybe you already have a hobby that you want to turn into a business, or you have an idea of an innovation you can bring to the market?

Once you define your ultimate goals, you’ll be able to start thinking about how you want to achieve those goals.

Step Two: Evaluate your business skills and knowledge

Many new business owners find it helpful to take classes in business to better grasp the intricacies of running a business. Online universities offer convenient solutions for those seeking to learn more about leadership, strategy, operations and general management.

If there are some areas of running a business that you aren’t well-versed in, you’ll want to leverage outside help or software that fills in the gaps. For example, if you’ve never managed payroll, software or apps can help. Many of these services provide same-day direct deposit, automation for payroll and payroll taxes, and time tracking.

Tired of waiting 90 days for payment? Try this instead.

Step Three: Define the structure of your business

Next, you’ll want to clearly define the best business structure for your venture. Incorporating rather than operating as a sole proprietorship does have its benefits. For example, if you form an LLC, you could be eligible for certain tax incentives, tax credits and business incentives. 

You will need a clear idea of what products you will sell at the time of the company launch and how your offering will evolve with time to keep up with industry trends and client demands. You will also need to know if you will be selling directly to consumers, acting as a wholesaler, or offering a B2B service for other businesses.

Step Four: Get your financials in order

An important part of creating a business plan is planning out the financing aspect. What cost structure will allow you to create your product or service and have it reach your final consumer? This would include all the physical production costs, supply chain, marketing, and personnel costs for your company structure.

Once you have all of the above information, you can bring it all together. Make financial projections of what your sales and profits would look like over the first few years and what startup costs and cash flow you need to finance to start the business.

Access to funding will be crucial in getting your venture up and running. Invoice factoring can help build working capital. 

Step Five: Research the market

The final step in creating a business plan is to research the competition. This will help you to avoid starting an unnecessary or unprofitable venture. Think of ways that make your company unique from other similar companies who are also competing for clients in this space. Answering the following questions will help guide your research:

  • What is different about your products and services that only you can provide?
  • Based on your product, costs, customer target, and competition, what would be the optimal price points for each of your products or services? 
  • How are you going to reach your consumers and let them know about your products? 

There are many resources online today that can help you establish a solid business plan. And once you have it on paper, you will see that it makes your vision come to life and gives you a base document that you can work with to approach investors or potential stakeholders in your business.

 

Up next: Create a smart digital marketing plan on a budget

relationship building

Turn your sales team into relationship-building rockstars!

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Give your sales team a winning advantage by boosting their relationship-building skills in the Relationship Economy.

relationship building

 

Not long ago, things like price, convenience and savings would drive customer preferences. But as we’ve moved towards the Relationship Economy, consumers are increasingly prioritizing customer service, brand loyalty and personalization.

 

“In a Relationship Economy, the primary currency is made up of the connections and trust among customers, employees, and vendors who create significantly more value in what we sell. These relationships and connections help make price irrelevant.”

— John R. DiJulius III, The Relationship Economy: Building Stronger Customer Connections in the Digital Age

 

Understanding the relationship economy

In today’s world, consumers are inundated with choices. In the relationship economy, consumers narrow their options by considering which business cares about them as a customer—and which businesses will deliver the best experience. Customers may also choose to do business with companies and brands that most closely align with their personal values, as they are increasingly prioritizing customer service, brand loyalty and personalization.

 

86% of customers believe that their experience is just as important as the actual product or service they purchase. — PWC

 

As a result, the relationship economy is the idea that today’s consumer prioritizes personalization, rapport, brand loyalty and customer experience over factors such as price, discounts or savings.

And thanks to things like increased connectivity through social media and improved customer data, the shift from the consumer economy to the relationship economy has only accelerated. Companies that have a system to tailor and personalize their customer experiences are more likely to win customers and retain their business. 

customer service and relationship-building

This also means that sales prospecting needs to consider things like rapport, loyalty and relationships to build trust and credibility with their customers. Sales reps need to know how to prospect with these values in mind so they can build relationships and rapport with potential clients. 

Beyond happy customers, positive customer relationships can create ripple effect benefits, including improved cash flow, business growth, and overall brand trust and credibility.

Up next: Read The beginner’s guide to sales prospecting in the relationship economy eBook

return to the workplace

5 ways beyond pay to support employees as they return to the workplace

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Encourage even the most reluctant employees to return to the workplace with these non-monetary compensation ideas.

return to the workplace

Whether people are fully or partially returning to the workplace, company leaders and people managers are challenged to create a safe workplace that supports employees’ job performance and personal wellbeing. 

Employees who have become accustomed to remote work may find the transition back to the physical office especially difficult. Using these top tips can help leaders motivate and encourage even the most hesitant employees to embrace their return.

1. Provide a flexible workplace

If there’s one thing the pandemic taught us, it’s that there’s more to life than work. Now, employees are looking for more than just money from their employers: nearly everyone wants flexibility. 

Globally, the EY survey found that nine in 10 employees want flexibility in where and when they work. Nearly half (40%) would consider leaving their job post-pandemic if their employer did not afford some form of flexibility in where they worked. Considering a hybrid work model doesn’t require additional compensation and checks the box on “where” people work.

2. Abolish the 9 to 5

During lockdowns, many people re-evaluated their lives and defined new priorities, whether it was pursuing a long-forgotten passion or vowing never to miss another family dinner. 

A flexible work schedule allow employees to work outside the conventional nine-to-five Monday to Friday workweek and create their own schedule to suit their needs. As long as productivity remains high and the output of work is consistently strong, this could be an attractive benefit for many employees. 

3. Offer additional support to employees

If you’re looking to create a truly flexible work environment, consider providing benefits that support your employees, such as day care subsidies, transportation bursaries, cost of living bonuses and or shortened workweeks as some companies have done. These benefits will improve the culture across the entire organization, improving employee satisfaction and productivity to ultimately make your employees happier, more productive units of value within the company. Increased worker satisfaction will also lead to better customer experiences.

4. Reevaluate your sick leave policy

In pre-pandemic times, going into the office coughing and sneezing, box of tissues in hand, was a sign of bravery and loyalty. Now, the message is: if you’re sick, stay home. That gets complicated for hybrid and remote workers. Someone who is sick might still be able to do some work from home, while others might have to work from home while tending to a sick child, raising questions about what constitutes a sick day or leave.

Consider reevaluating your sick day and paid leave policies to account for the new work environment and your employees’ work/life circumstances.

5. Modernize your health benefits plan

In addition, look at your benefits plan to see if more support can be added in light of people’s current struggles. For example, many organizations have introduced or increased coverage for mental health services, physical activities (such as gym memberships or yoga classes) and feminine healthcare. Another important thing to ensure is the physical safety of your workers/employees in the workplace. If any employee gets injured while working, the employer should be responsible and considerate enough to provide adequate support to the employee by compensating and giving him the required time off to attend all the medical appointments, receive treatment and recover.

Putting People First

Ultimately, people are at the core of every successful business, and providing a supportive workplace makes all the difference. 

At Liquid Capital, we’re dedicated to helping our clients with their financial needs, but we also care about their people. We’re business owners, too, so we understand the importance of employee happiness and wellbeing.

Want to increase your own mental health resilience? Discover these Positive mental health practices for entrepreneurs.

Can’t get a bank loan

How to grow a business when you can’t get a bank loan

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Can’t get a bank loan? You’re not alone, and you have more options when trying to fund your business growth.

Can’t get a bank loan

Photo by Jopwell

Startup capital is the number one obstacle to starting a business and then growing it to new heights. Getting a bank loan is difficult without a proven business history that shows your creditworthiness—and draining your savings to start a business is a risky move.

If you can’t get a bank loan, there’s no reason to abandon your entrepreneurial dreams. Here are three strategies you can use to start a business and grow it with limited working capital.

Start a low-cost business

Some businesses require five figures to launch, but there are a lot of businesses you can start without a major investment.

  • Online businesses are among the cheapest to start. Examples include selling virtual services, creating digital products or starting a no-inventory eCommerce business using dropshipping and print-on-demand services.
  • If you prefer to keep it close to home, look to local services businesses like pet care, lawn care or cleaning services. Think about how you might scale those into bigger operations, and you could take a traditional small job and turn it into a bigger business operation! 
  • Freelancing businesses are another top choice for first-time entrepreneurs. You can start a freelance business on the side or full-time using online marketplaces to build your client roster.

Your choice of business entity affects the costs of starting a business. Corporations come with additional startup costs but could be the right choice for your structure. While sole proprietorships and LLCs are inexpensive to form, they also come with limitations, so it’s important to consider the pros, cons and get professional advice on the route to follow.

Find business investors

What if you have lofty business dreams but lack the capital to make them a reality? When you have a great idea but no money to get it off the ground, turn to investors.

  • Angel investors and venture capitalists are two major sources of equity funding for startups. This type of investor is often suited for high-growth startups with the potential for large returns.
  • Startup accelerators help new business owners connect with investors. Some business accelerators provide capital directly to startups, sometimes in exchange for equity.
  • Many small startups find success with crowdfunding. The best crowdfunding strategies offer equity or non-financial rewards in exchange for contributions.

Apply for alternative financing

Business loans aren’t the only way to finance your venture. These financing alternatives appeal to entrepreneurs who can’t get traditional business loans or bank funding. 

In many cases, alternative financing can be leveraged alongside your traditional funding, and at Liquid Capital, we’re happy to work with your banker, traditional lender and other financial institution. Essentially, we become your funding team, which can supercharge your financing abilities.

  • Peer-to-peer lending uses unsecured personal loans through P2P lending platforms to provide startup business capital. Because P2P lending isn’t FDIC-insured, it’s important to understand the risks.
  • Equipment financing helps founders buy equipment without the barriers of traditional bank financing. Because the business equipment serves as collateral, you may not need credit history to qualify.
  • Early-stage businesses can maximize growth using invoice factoring. Invoice factoring turns unpaid invoices into cash to free up working capital.
  • When all else fails, bootstrapping is a proven way to build a business from the ground up. Instead of relying on outside funding, bootstrapping grows a startup slowly using its own funds.

Of course, we don’t want you to struggle to get funding, so give us a call and we can walk through all the options with you.

Scaling a business?

You don’t have to choose between draining your savings and giving up on your business goals. With the right strategy, you can start a business without putting your personal finances on the line. Use these resources to learn more about your startup financing options and discover your business’s path to success.

Up next:

 

returning to the office

Returning to the office won’t be easy. How can leaders support employees?

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As employees begin returning to the office, there are some key considerations that leaders will want to address so their employees are supported.

returning to the office

Going back to the office and back to “normal” is a hot topic around the virtual water cooler these days. But as company leaders finalize their re-entry plans after more than 18 months of remote work, they face a cold new reality: The workplace as we knew it is no more. 

Even though socially distanced employees miss engaging with co-workers in person, many are reluctant to return full time. Research from Leger found that 33% of Americans and 40% of Canadians want to work a hybrid model, meaning a mix of in-office and at-home work. In addition, about half of Americans (47%) and Canadians (50%) who want to return to their workplace wouldn’t be comfortable doing so if some of their colleagues aren’t vaccinated. 

To help ensure successful re-entry, here are several ways to support your employees and teams when getting back to the office: 

Physical health and safety is job number one

Even as public health measures surrounding the pandemic lift, you can take steps to reduce health risks (and any associated fear factor) in your workplace. Guidelines to help stop the spread of the virus include implementing a rapid testing and screening program, providing personal protective equipment, and working with a building operator or HVAC specialist to improve air exchange rates or filtration. In the McKinsey study, improved air filtration was a top request among employees, with 62% saying it could decrease the stress they experienced from returning to work.

Put yourself in employees’ shoes

Just as employees had to acclimate to a new way of working when the pandemic first hit, the return to office comes with its own set of adjustments and challenges. For example, in a recent McKinsey survey, one-third of respondents said the return to work has had a negative impact on their mental health. Among those who have not yet returned to their workplace, nearly half anticipate negative mental health impacts such as stress and anxiety.

Create policies

A vaccine policy might also help ease employees’ minds. A survey by EY found that 61% of employees want their company to require the vaccine before returning to physical workspaces. For employees’ part, encourage them to stay home when they’re sick, practice hand hygiene, clean and disinfect their workstations, and maintain physical distance from co-workers.

Create an environment of psychological safety

In addition to making sure your employees are physically safe, it’s important to prioritize psychological safety. Psychological safety refers to the feeling of being one’s whole self at work, and the belief that one can speak up with ideas, questions or concerns without fear of negative consequences. 

A Workhuman survey of U.S. workers found that only 26% felt psychologically safe during the pandemic and experienced higher levels of burnout, stress and loneliness. 

Some ways you can boost employees’ psychological safety are showing appreciation for their ideas, being an active listener, fostering a culture of openness, and creating a sense of belonging.

Consider pay transparency

Most employers don’t want their employees to compare paycheques, as it can result in animosity and resentment among their teams. However, the concept of pay transparency is gaining momentum, as it aims to close unfair pay gaps based on gender, race, age or disability. While this might not be for everyone, it could be something to consider for some organizations.

Pay transparency allows your company’s compensation figures (salary ranges or specific numbers) to be visible to other people, either internally, publicly, or both. 

While pay transparency encourages equal pay, there’s more to it than monetary benefits. When done correctly, pay transparency can improve workplace culture, promote diversity, boost morale and improve employee engagement. Some pay transparency tips are: 

  1. Review compensation models and resolve salary discrepancies
  2. Determine your company’s comfort level with pay transparency
  3. Train managers on how to successfully navigate salary discussions.

 

Once you’ve reviewed these considerations, you will want to create a clear and transparent return to the office plan. Sharing your plans with employees will help to reduce anxiety and uncertainty about what awaits everyone as they transition into the post-pandemic workplace — whether they return in-person full time or take a hybrid approach.

Up next: 7 ways to make strong business relationships that last

business cash advance vs. invoice factoring

Tired of business cash advances and waiting 90 days for payment?

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Thinking of getting another business cash advance? Learn why invoice factoring might be better for you or your client.

business cash advance vs. invoice factoring

Cash flow is vital for your business and impacts everything from payroll and lease payments to your next capital investment. But when it’s all tied up with your clients and their unpaid invoices, what can you do? 

Many business owners turn to their bank for help, but can’t always get financing. Others may resort to merchant cash advances, but those temporary solutions could leave you in a worse position than when you started.

And what if your business is new and you don’t have the past business or credit history to even apply for the advance? You’re still stuck with outstanding invoices and no cash flow.

 

Related: Learn why you should choose invoice factoring over a cash advance

Unlock cash today with invoice factoring

Why not leverage your current client open invoices to get you access to cash through invoice factoring instead? After all, you’ve worked hard to earn that business, but unless the client is going to pay you early, you can only access it today through invoice factoring. 

Invoice factoring can immediately unlock money that’s already yours, freeing your business from the regular net 30, 60 or 90-day payment cycle. You can use the money for payroll, operational costs, debt repayment, supplier invoices or anything else you want to pay off. 

Your factoring partner keeps a small percentage of the invoice as a reserve, while you see the majority of that working capital right away.

cash advance

Image via Lucas

If you’re in need of ongoing cash flow and want to eliminate the hassle of unpaid invoices, please get in touch. We can explain how invoice factoring works and uncover financing for your business that will unlock the money your business is already owed. 

Free up your business cash flow today and breathe a little easier. 

Get started with a helpful, no-obligation consultation. Find your nearest Liquid Capital Principal today.

Business growth recovery concept

Making cash available for your business recovery

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Part 3 of the “Cash Flow Through Uncertainty Series”: Implement these tips to build your business recovery strategy.

Business recovery and growth concept

When an economic crisis (or global pandemic) comes to an end, it’s time to start thinking about moving from survival mode to thriving mode. But having the cash to get back into growth and prosperity can be tricky after months or even years of crisis income. 

Using these tips and resources can help you to recover better, faster and stronger:

1. Know your working capital

Basic math can give you an idea of how much cash you have to work with. Subtract your liabilities from your assets as a starting point. To get more detailed, set a cash flow budget. Some businesses will be starting almost from scratch, so you need to create a realistic budget of how much you’ll need to get back up and running at full speed.

2. Make realistic budget forecasts

Revenue may not immediately reach pre-crisis levels. So plan for lower-income levels in the meantime (ie. at least for the next six months) until you can more accurately gauge demand. Similarly, you may have to increase spending to reach the inventory and staffing levels you’ll need for a successful recovery.

3. Take a look at the ‘damage’

Assess exactly where you are financially now that you’re on the other side of the crisis. Work out how badly you’ve been hit, including your assets, investments, savings and regular income. Compare those with last year’s figures and build an accurate picture of where you’re at, where you want to be, and what financing and income you need to get there.

cash flow budget

4. Create a realistic schedule for recovery

When things start getting back to normal, you’ll be understandably impatient to return to pre-crisis levels of business. Creating a step-by-step schedule for achieving this is crucial for successful cash flow management. For example, you might first secure the financing you need for recovery, then build up your inventory and finally hire new employees (or bring back old ones).

5. Find a supportive and understanding finance partner

You may need flexible finance options to make a full recovery—and you want a lender whose employees have the right mix of expertise and understanding of the needs of small and medium businesses. Many larger financial institutions are risk-averse and don’t offer flexible options. On the other hand, alternative lenders can offer a variety of financing solutions, plus the expert advice to help your company launch into recovery.

Help for every uncertain stage

Liquid Capital is committed to helping small and medium-sized businesses to weather uncertain times and periods of crisis. Our team of experts are experienced in strategic funding strategies and will be with you every step of the way as you go through turbulent times.

Along with that expertise, we provide the finance options that can offer working capital when you need it, including invoice factoring, asset-based lending and more. Get in touch to find out more about our cash flow solutions and how we can help your business.

 

Up Next: Read Part 1: How to manage cash flow through uncertainty and Part 2: Sail through a cash flow crisis — 5 places to batten down the hatches