As a business owner, it’s easy to fall into the trap of thinking you must do everything, and it’s easy to think that you must do it without ever asking for help. Thinking in this way, however, is dangerous. Especially when it comes to your finances, don't be afraid to ask for help. To find the best sources of such financial assistance, do read on.
Ask an Investor
No matter how old and established your business is, if its finances ever take a turn for the worse then it’s okay to inject it with fresh, new cash. More to the point, it’s okay to allow somebody from the outside to invest in it.
When you speak to investors, there are certain questions that you should ask them. First, you should ask them about their investing history, paying a particular amount of attention to the last investment that they made because that will be the one to tell you most about their current capabilities. Second, you should ask them what their investing process is usually like, and how much leverage they seek to pull. Finally, you should ask to see their portfolio, and you should then deduce for yourself how your model fits into it.
Ask the Bank
The bank will always be there, meaning you’ll always be able to seek assistance from it. Whether it is a bank loan that you ask for, a simple piece of advice or a letter of credit, you should know that your bank’s doors will always be open should you need financial assistance.
In regards to the latter, when obtaining a letter of credit from your bank, you should make sure that you meet the conditions needed before you go ahead and do it. As stated in Trade Finance Global's Letter of Credit Guide, a letter of credit (or ‘documentary credits’) is a guarantee from your bank that you will be able to make a payment to a person at a specific time and under specific conditions. What this means, quite simply, is that you need to ensure that you will be able to meet all of this, as not being able to do so will lead you into trouble with those you owe payment to, and then the bank itself.
Ask a Factor
If you’re struggling to chase up a rouge invoice from a customer who just won't pay up, and you need the money they owe you now, then factor off the invoice to a factoring company. Doing so will see you paid for the invoice, and it’ll see your problem of chasing it alleviated as well. There are always going to be customers out there that seek to take advantage of you by accepting your services without paying for them, and it is fortunate that there are factoring companies out there combating them.
Asking for financial assistance is not a crime or a sin, so don’t think twice about doing it if it’s the only way you are going to save your business.