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Tips for Business Owners Struggling with Unpaid Invoices
As time runs out on the bill to reopen the government, many people are bracing for the worst. While the government prepares for another bitter battle, FundThrough explores the alternative ways in which businesses can make ends meet.
The United States is still reeling from the longest shutdown in the country’s history. The government shutdown affected life for hundreds of thousands of Americans. Vital services were put on hold, and many workers were forced to go for weeks without being paid. But the ramifications of the shutdown extended far beyond the lives of government workers.
Shutdown Hamstrings Small Businesses
When a shutdown occurs, many institutions crucial to the health of small businesses are closed while they await federal funding. Agencies that are partially shut down include the Small Business Administration and much of the Internal Revenue Service.
This means much more than a delay on your federal tax return. With the SBA out of the picture, an estimated $2 billion in small business loans were placed on hold. That’s money that was earmarked for payroll, bills, inventory, real estate deals, and more.
This lack of funds can be more than inconvenient; it can put your entire business in jeopardy. Whether it’s keeping food on the tables of employees, or having the capital necessary to close a deal, everything is up in the air when money that people were relying on is no longer available.
However, not all hope is lost. Thankfully, there are other options available to help small businesses make ends meet.
Know Your Options
Just because SBA loans aren’t available doesn’t mean that there aren’t alternative avenues that small businesses can pursue.
These are just some of the things that companies should consider when it comes to making sure vendors get paid, deals get made, and business continues as per usual.
1. Consider another financing option.
One of the first things a small business should consider is looking toward alternative financing solutions while they wait for the SBA to get going. FundThrough provides small businesses with the cash flow injection they need to keep running at full capacity. Reasonable rates are designed to work for business owners.
With online invoice financing from an alternative financing solution like FundThrough, you can have things back to normal in as little as a day.
2. Think about your credit line.
This is much more of a last resort; because we don’t encourage anyone to go into more debt than necessary. That said, credit lines are the lifeblood of many businesses. For many people, a credit card is there for use in the case of an emergency, and a government shutdown can certainly qualify as an emergency.
Run the numbers and see if asking for an extension on any of your existing credit lines might be right for your business. It could just be the extra push you need to get over the hump.
3. Ask for more time.
In many cases, people aren’t indifferent to extenuating circumstances. If you have a real estate deal for a new location, think about asking if you can push back your closing date for a week or two. If you explain the situation as a result of the government shutdown, you may be surprised at how understanding many creditors and business partners can be.
Jump-Start Your Business in as Little as 24 Hours
These are just a few of the options you might want to consider when it comes to keeping your business afloat. Now that the government is open again, we’ll have our fingers crossed that the SBA will be working overtime to get those loans processed. In the meantime, this should provide you with some valuable backups to keep the lights on should the worst happen again.
Businesses interested in starting the application process with FundThrough now could quickly find themselves one step ahead of the game. Signup is fast and easy, and funding can be available in as little as 24 hours.