Lifestyle

Biz Flow

Just about every business deals with cashflow challenges. Maintaining sufficient cashflow may not be a day-to-day problem for a company with vast financial resources, but for medium-size companies, maximizing cashflow is critical to success.
Text by Dena Roché | June 4, 2018 | Lifestyle

If your company is expanding rapidly, many times it may struggle with a lack of liquidity to finance its growth. A strong financial partner can help. At Sabadell, we offer factoring to help medium-size businesses turn their account receivables into cash instantly. Factoring can be a solution for businesses that are growing and would like to have financing options beyond the traditional loan or line of credit. Factoring is a cash-management arrangement that allows your company to access cash based on the strength of its customers’ credit by selling or receiving a loan against its account receivables. Having and executing an efficient liquidity strategy is a key factor in maximizing your business’ day-to-day operations. In the end, implementation of a factoring program can help boost your company’s long-term success.

ABOUT THE AUTHOR
Jose Miguel Arigita is VP, Supply Chain Finance at Sabadell United Bank; 1111 Brickell Ave., 30th Floor, Miami, FL 33131; 305.351.4387; JArigita@SabadellBank.com; SabadellBank.com.

Money Options
Check out these sources that will help you ensure your business gets to the next level with sufficient cashflow.
Text by Dena Roché

Traditional Loan
This is the most common way businesses can raise money for growth. Loans can come from banks, credit unions, family and friends and nowadays from peer-to-peer financing.

 

 

Sell Assets
Oftentimes businesses have unused assets that can be converted to cash. Examples of this include unused equipment.

 

 

 

Recapitalize Time
A private company can consider taking the business public to generate cash through a stock offering. The company can also issue bonds to generate money.