When Your Growing SME Needs Funding

Small businesses have big to do lists and those lists often come with their own challenges. One of the most common challenges small business owners face are related to cash flow management.

When starting a small business, savvy small business owners put together their growth strategy. Before they know it, they're off to a great start and are running a thriving business. The problem is, while the small business grows, it's even more important to maintain the financial health of the company. Whilst a good problem to have, growth must continue.

When the small business originally opened it needed access to working capital to keep the lights on. Similar to the beginning phase, the growth phase also requires working capital, but this time it's to maintain and fund expansion initiatives.

All businesses will have to manage negative cash flow at some point or another. Big or small, it is inevitable. Whether your small business experiences elements of seasonality or if you're overstocked in inventory; negative cash flow threatens to wreak havoc on a company's bottom line. It's extremely important for rapidly growing small businesses to effectively manage cash. An easy way to protect the business and to bridge cash flow gaps is to access funding and unlock working capital.

Contrary to seeking capital at the early stages of the small business, the growth phase will tell you what you need capital for and where capital must be allocated. New commercial space, office renovations, marketing, employees, and other expansion projects all require funding. These projects can benefit or harm the business growth strategy. Seeking funding for expansion projects is a safe way to ensure peace of mind and provide flexibility.

Funding during the growth phase of a small business also provides a safety net. It's good to have a cushion for the peaks and valleys that make up the small business landscape. Whether its a rainy day or an unrefusable opportunity, access to funding prevents your small business from missing out on growth opportunities.

If you are a small business and you're at the point where funding is crucial to growth, start exploring your options. At TraderRiver, we serve small businesses with cross borders solutions to keep the supply chain moving and business growing. Ease your cash flow pressures – up to 150 days additional credit.

For more information about our cash flow solutions click here.

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