3 ways to finance your business without credit cards

If you are in a liquidity crisis and the need to find funding for your business here are three ways you may have overlooked.

1. Seller Financing

Stretching out trade payables, say 30 days to 60 days, a method is quite common for companies to improve their cash flow. Usually the vendors are not very happy when this happens, and some also express their disapproval in no uncertain terms. Most companies are small businesses, and that it only hurts at all long-term debt. Think about it: if you are running on one of your customers to make payment within 30 days, and that the customer does not pay for 90 days, can significantly affect cash flow. If it's one of your main customers, the impact can be very serious. Do not have the money to pay bills and so has caused a ripple effect across the board.

This suggestion is different. If you have established a good relationship with suppliers, you can sometimes get them to agree to fund part of your business by extending their terms for a particularly large order for a period of time. If you are a new company with little or no history, you could bring suppliers showing them your business plan and documentation of orders already received. If the seller is convinced that your company will be successful, and one of their customers better in the future, may be willing to give you a break now.

Another alternative is to ensure that the seller will be your exclusive supplier for an agreed time in return for longer credit terms. Or you can offer to pay a little 'higher than market price in exchange for longer credit terms. This method can be dangerous, because it establishes the priority of a higher price. When longer terms are no longer necessary, can be a challenge to decrease the price that you pay the seller.

Occasionally, you can persuade a seller to exchange a job to pay owed to them for a note payable, however, or perhaps an equity position in your company.

2. Customers Prepay

If you have successfully demonstrated that it expresses your customers for your goods on time, as ordered, you may be able to convince one or more of them to put a deposit on their future orders, perhaps up to 50%. You can add an incentive by reducing the price a little 'in exchange for the deposit. Or you can throw in a bonus: if you have ordered 100 objects that give them 10 extra. New customers may also be required a deposit, especially if it is a big order or customized.

3.Trade and barter

Barter is probably one of the oldest forms of commerce. It 's simply the exchange of goods or services for other goods, instead of using cash as a medium. Trade can be directly between the two parties or the trade can go through a barter exchange.

The barter trade usually works on a points system, one point for every dollar. The exchange has members who have agreed to barter their services and products. Say you need a new lap top, but the computer store did not need your product / service. You earn points by bartering with those individuals and companies who need your product / service. They accumulate points through the exchange. When you have enough for the lap top, you 'buy' the lap top with points accumulated. The exchange sometimes takes a small percentage of points as a fee for their services.

Do not be limited in your thinking about what can be bartered. Barter approach as you would any other sale or purchase. Dealing with reputable companies. Do not feel the need to belittle the product. The barter purchase is reflected on the income statement as an expense. The bargain sale (the one you trade) is reflected as revenue.

Barter organizations can be found on the web, just put on the market and barter organization. Many cities have worked at the local barter organizations. Contact your local Chamber of Commerce. The yellow pages listings damage as well.

Use these three methods of coming up with money for your company....