Is Your Startup Ready to Meet a Cash Emergency?

No matter, how effective business plan you have devised for your startup, if it doesn’t address the cash emergency issues, it’s not a good business plan.

Well, a startup or even established businesses at times face cash emergency due to any reason; let it be delayed client payments, lost customers, a natural disaster, an accident or any other unexpected situation. The only way out is to have a plan to deal such kind of cash emergencies, and to do so, you must know all available emergency small business loans.

Short-term emergency business loans can keep your startup or small business afloat while you deal with the underlying problem that caused the cash flow shortfall. Whatever the case, these loans are meant to provide short-term relief and be repaid promptly.

Here are top three options you must keep in mind for business emergency:

1- Personal Line of Credit: If it’s a sole proprietorship or partnership, you may get quick cash from your own savings. This is the fastest and most reliable way, because you don’t need to pay any interest over it. Using your personal credit card for startup funding is one of the most popular trend.

2- Family and Friends: Always keep a list of friends, family or extended circles from whom you can borrow money in the time of need. Check when you should borrow from friends and family!

3- Merchant Cash Advance for Business Emergencies: ideally useful, when a certain percentage of your customers pay by credit card!

4- Payday loans also work well in some cases. They are risky too, but you should do some research to know when they can work well.

5- Small Business Loans: And yes, you must always have this option in mind, so you should apply for small business loans from banks and other institutions way before the emergency arrives. You need to apply in advance because these loans take some time to get approved!

The Bottom Line:

Prepare your startup for emergency situation and it will never be in emergency!

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