Working Capital Solutions for Brooklyn Businesses
Brooklyn is home to a large number of small businesses and niche startups ranging from baking companies to software development, small-scale manufacturers, event planners, and everything in between. The one common tie between all Brooklyn businesses is the needs for working capital. Working capital is essential for maintaining and growing operations in a very competitive marketplace, and traditional loans are not always the best fit.
Loans and Brooklyn Businesses
The usual “go to” for businesses in need of working capital is a traditional loan, in which funds are given in exchange for debt. New and niche Brooklyn businesses face some challenges with traditional loans. First, traditional lenders view new, small, and niche businesses as high-risk territory, and therefore have requirements that are rather steep for local entrepreneurs. Second, the new wave of business owners do not want to take on additional debt, and they are seeking out viable financing alternatives that allow their businesses to thrive and grow. Debt from loans can place a severe strain on revenue and cash flow, but fortunately there are more flexible alternatives out there with small businesses in mind.
Accounts Receivable Financing
Accounts receivable financing, or factoring, is a working capital solution that is a great fit for businesses that issue invoices with payment schedules of 30-days or longer. Instead of waiting on clients to pay their invoices, unpaid receivables are submitted for factoring services and converted to cash which is usually available within 24 hours. Accounts receivable financing accelerates cash flow so Brooklyn businesses can not only maintain operations but also build up capital reserves for growth projects. What’s more, accounts receivable financing is not a traditional loan, so businesses can preserve their credit ratings and avoid taking on unnecessary debt.
Merchant Cash Advance
For Brooklyn businesses that operate on a point-of-sale system and accept credit cards from customers for purchases, there’s a merchant cash advance. A merchant cash advance is another working capital solution that does not place debt on the books. As the name implies, a merchant cash advance is an infusion of working capital which can be used to anything a business needs. Instead of rigid monthly payments, the balance is repaid from a small percentage of credit card receipts. This provides Brooklyn businesses with the flexibility they need, without placing a strain on finances.
Get a Working Capital Solution the Fits Your Business
First Crescent Capital provides a wide range of funding solutions to Brooklyn businesses of all shapes and sizes. Whether you need an extra infusion of capital to maintain operations, want to accelerate your cash flow, or need something more robust to carry off growth projects, we can help. Contact First Crescent Capital today to get started.