Merchant Cash Advance
Some Businesses Have an Ebb and Flow
Navigating the fluctuating tides of cash flow, the business encountered the essential strategy of Maintaining with a Line of Credit. Some months yielded abundance in work and revenue flow. Others posed hurdles in managing expenses such as bills, payroll for employees, and promotional campaigns.
In response to this dilemma, the owner proactively embraced the concept of Maintaining with a Line of Credit. This approach ensured a financial safety net during leaner periods and enabled surplus profits to fortify the months when business momentum slowed.
How Much Money Is Right?
Rather than needing millions of dollars for a new building, the main need here was to have some influx when things were slow. The fluctuations in cash flow could be stressful even if the company was overall profitable. Looking into the records was the best first step to determining how much money would be right for the company’s needs.
After digging into the specifics, the owner decided that a $100,000 loan would be more than enough to keep things running smoothly regardless of how a specific month went. So, the next step was to determine the right form of financing to meet the company’s needs.