Entrepreneurs must be prepared to face all obstacles including financial emergencies which need to be resolved in an extremely short period of time. Also, while you should always have a contingency fund that you can draw on in an emergency, things don’t always go as planned or as planned.
So when the going gets tough, you need to know your options if you need to get your hands on some cash fast. Here are some things to consider:
# 1: Bank loan or credit
The first option that comes to your mind when you need money that you don’t have is a bank loan. Depending on your financial situation and the set of investors, you can get a pretty good amount that will keep you going for a while.
However, bank loans don’t happen overnight, and you need a solid credit rating to get the amount you need (or any amount for that matter). So, if you need cash now, a loan from a financial institution might not be the fastest way to get it.
# 2: ready the same day
However, you cannot ask for large amounts, but you will be able to solve most financial crises that do not require a lot of money. Still, it’s best to only use this option if you have funds in the near future, as the interest can be a bit high (which is natural considering the speed of delivery).
# 3: ask a friend or family
If you have this option on the table and you are confident that the person is reliable and won’t stalk you for payments, it is best to try it first. When you lend someone money, you don’t have to worry about interest or having to pass a background check. Usually, if they can help you, they will and you can resolve your crisis with peace of mind.
# 4: find an investor
If your business is doing well or your future prospects are good, you can solve this problem by finding a reliable investor. Many wealthy people and organizations are looking to support new entrepreneurs on the verge of becoming a global success, so you just need to convince them of your viability.
It may seem difficult, but a solid business plan and a well-crafted vision usually does the trick.
# 5: find other sources of income
Sometimes it takes a crisis to see the big picture and find a different path for your business. So before you fall into despair, take a closer look at your business and business assets. Is there anything else you could do, with current resources, that is paying off?
Also check if any of your assets can be monetized without going through too many hurdles. Even though it’s a painful decision, it may be the right one for your current situation.