Have you considered financing to manage your cash flow? What about setting up your business assets as readily-available capital without taking on immediate debt? Often, the best plan for managing your outgoing money commitments is one that involves a couple of layers of credit options to suit different situations. Here are a few tips for managing your ledger without late payments or declined contracts due to low starting funds.

1. Use Your Available Credit Resources

Believe it or not, every thriving business has the ability to access some kind of credit. You may only be able to open a small credit line or get a cash advance for a few weeks at this phase of your development, but there are options out there. Whether you are financing invoices and other assets or relying on the equity in real estate for a credit line, make sure you find your accessible primary resource.

2. Build in a Backup Payment Resource

This backup cash flow solution does not have to be some form of financing or credit product, though many companies do use backup financing. It could also be reserve capital that is dedicated to covering cash burn when your income is not matching your commitments and your credit is stretched. If so, you should start building a savings plan from your business income now. Whatever you do, set it up so that if you max out the first option, there’s always something to pivot toward.

3. Always Understand Your Burn Time

Between your on-hand cash, liquid reserves, and credit options, you always have a certain amount of time before you have to stop operations and wait for the money to come in. Six to twelve months is a good long-term goal to make sure you can manage even the biggest emergencies, but it is often unattainable as cash savings in the first few years of a company’s life. Make sure you understand where you are at in relation to your current available cash flow burn time, as well as how much time you have available when your reserves are intact and your credit balances are paid off.

Browse Your Financing Options Today

If you do not have a credit resource set up for your business yet, it’s a good time to check out the options you qualify for. Whether it’s assets that can be used for cash advance financing, credit lines, or term loans for working capital, there’s something that suits your business.