5 Ways to Inject Cash into Your Company LifelinePosted by Factor Funding Co. on July 21, 2014
All businesses have an end goal of boosting their sales and increasing profits, but sometimes it may not be enough simply to push more sales to inject more cash flow into the organization. In fact, there are several ways companies can add more cash into the company lifeline than just simply trying to add to their services and products and boost up their customer numbers. There are avenues that can be taken that many business owners haven't even thought about and these happen to be some of the best.
- Increasing Prices - This one is a common method of injecting a bit more cash into the overall health of the business but it should be used sparingly. Consistently raising prices when more cash is needed is more than likely going to drive away loyal customers to cheaper alternatives and competitors. Instead, make an effort to only increase prices when it is absolutely needed or necessary.
- Business Grants - Buzzwords like "job creators" can be more than just a word in a news article; it can generate extra cash for a company through business grants. There are several other types of grants that businesses can easily apply for. From job creation, to small business grants, to state grants given to local companies, finding the right one just means doing a bit of research and beginning the application process right now.
- Selling Debt to Banks - Selling off debt to banks is still a viable solution when injecting cash into a company's lifeline because banks still love buying it off even in this day and age. That means less debt for a business and an opportunity to grow cash flow for bigger and better opportunities.
- Selling off Used Assets - When businesses stay in one building for quite some time there is going to be a buildup of old assets such as office equipment, furniture and other things. These used assets can be sold off online on Craigslist, to other businesses locally, or even auctioned off to get more cash. A business with "bloat" isn't a good thing because most of these assets are no longer bringing in money. With the added cash from selling off used assets, newer equipment can be bought or the money can be used in other departments.
- Choose Factoring - Sometimes businesses need help with streamlining their invoices and accounts receivable and that means working with a factoring service. Factoring helps generate a new source of cash flow without the business having to raise their prices or try to get more sales out of their sales staff. It is also well worth the money when factoring is being properly utilized.
Finding new ways to inject cash into the company lifeline doesn't have to mean pushing more sales and becoming frustrated with zero results. There are other options out there that are easy to accomplish and mean almost immediate cash flow.
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