In the current economic landscape, it may seem nearly impossible to reduce debt while simultaneously developing a successful growth strategy. However, businesses across all industries are implementing plans to reduce debt, improve credit ratings, and take action on growth projects to make this year extremely successful.
Reduce Debt Through Consolidation
Many businesses throughout the United States are currently juggling debt from two or more loans. This means portioning out multiple payments at different interest rates. Handling multiple loan payments can be cumbersome, to say the least. Loan consolidation can reduce debt by conflating multiple loans into one manageable payment. Additionally, loan consolidation often gives the option of fixed interest, which helps businesses greatly when interest rates are poised to rise at least two more times in 2018. By consolidating loans, businesses can quickly reduce debt while retaining more revenue, and build up capital reserves to take advantage of growth opportunities.
Sidestepping Debt Through Vendor Credit
Most vendors will offer credit to business customers, which helps to increase purchasing power. However, not all vendors send reports to the major credit agencies. Before opening a line of credit with a vendor, ask them if they send monthly reports. This will help to not only give businesses the ability to purchase materials and supplies without loans, but also build up business credit ratings.
Increasing Cash Flow
For businesses with existing debt, it is of the utmost importance to maintain a healthy cash flow. With a significant portion of revenue being used to reduce debt, any lag in customer payments can create a severe internal strain on finances. In order to maximize cash flow, businesses are turning to invoice factoring services. Invoice factoring eliminates the standard waiting periods for revenue by converting open invoices to cash within 24 hours. Additionally, invoice factoring services do not place any debt on the books, nor do they negatively impact business credit ratings. By using factoring for open invoices, businesses can maximize cash flow, reduce debt, and still build up capital reserves so they can stay focused on growth.
Maximize Revenue And Reduce Debt Today
FSW Funding specializes in factoring services for businesses across all industries. Whether you are trying to reduce debt, maximize cash flow, or are focused on growth, our team will create an invoice factoring solution tailored to your needs. To get started, contact our offices today.