Are you enjoying the roller coaster ride of opening a new business? One day you’re on top of the world after closing your third sale in one day. The next day, you’re pinched for cash. Unfortunately, predicting actual cash flow is far from a science because unexpected developments are part and parcel of launching a new enterprise.
An entrepreneur may not know there are some nonprofits that can help with microloan financing. Those programs may put up anywhere from a few hundred to a few thousand dollars for a new business through subsidized loans, or even a grant or two.
Still, that’s usually just a drop in the bucket to what an entrepreneur really needs to get a business going. Often, it’s not until you hit six months post launch, or that first anniversary, that you begin to experience the roller coaster ride.
When the personal credit cards are maxed and you don’t have the upfront cash to buy the supplies you need (or to fulfill those orders placed last week), the cold sweat breaks out across your brow. What to do when you’ve already tapped every relative in your family tree? Perhaps it’s time to consider a short-term loan that carries a bit more interest.
Don’t sweat it. Every entrepreneur has experienced a cash flow crisis. It’s a normal part of launching a business. The main danger here is not the less-than-optimal interest rate. The pitfall is cutting off the cash flow life support for your business. Those stakes can prove much higher than paying more in interest in order to keep the cashflow pipeline in good working order.