| Phone: 1-423-943-3938 Contact Us |
| Best Fit Financial LLC "Worth telling your best friend about" |
If sales are quickly shrinking, you may have a long term business decline. At the same time, if a company has a very good increase in sales, a cash flow
issue may arise. The quicker and higher the sales graph goes, the tighter the cash flow gets. If the scale is quick, high, and lasts for an extended period,
your business may experience a long term business problem, similar to the problem declining sales cause.
Most companies have cash put into the operations as it starts up and starts growing. If the growth is steady and the company experiences a reasonable
profit margin, it will experience some retained earnings. Once retained earnings hits a certain level, the company will tend to pay itself back for some of the
start up cost. It is during this normal business cycle of fast growth that a problem may occur. The cash put in up front is long since gone, and the cash taken
out as the company grew, has been spent personally and is rarely available to give back to the company to fund the needed cash to support growth.
Refinancing the primary debt is both slow, expensive, and in an increasing rate environment, may actually have a negative effect to efficiency. Now, take
into account that many lenders do not want to be in a secondary position behind a primary lender. This starts leaving companies somewhat in a box as to
where, when and how they are going to get the cash to support this growth.
The most common ways we help solve this "good problem to have" situation is by utilizing lending types that are specifically designed for this and
mentioned throughout our site. Asset Based lines of credit, combining inventory with accounts receivable and other assets to establish a higher line of
credit, is one of the best products. Maybe just using the accounts receivables or just inventory to fund the growth is best. Maybe just an unsecured line of
credit will do the job. The real answer will be found by looking at how the company is made up, what it has to offer, how ratio's are as it relates to cash need
vs collateral and or cash flow and more. One will also see the equipment leasing and buying come into the picture for companies that build products and
just need to build more or add another production line. We will be glad to give upfront free consulting to companies that find themselves in a great growth
period needing cash. We have worked for years to bring partners to the table that are among the best in the industry to work alongside you during this
cycle. They will grow along with you and guide you professionally. This is what we do. You can find applications for some of these products within the site
and we always look forward to talking with you!
issue may arise. The quicker and higher the sales graph goes, the tighter the cash flow gets. If the scale is quick, high, and lasts for an extended period,
your business may experience a long term business problem, similar to the problem declining sales cause.
Most companies have cash put into the operations as it starts up and starts growing. If the growth is steady and the company experiences a reasonable
profit margin, it will experience some retained earnings. Once retained earnings hits a certain level, the company will tend to pay itself back for some of the
start up cost. It is during this normal business cycle of fast growth that a problem may occur. The cash put in up front is long since gone, and the cash taken
out as the company grew, has been spent personally and is rarely available to give back to the company to fund the needed cash to support growth.
Refinancing the primary debt is both slow, expensive, and in an increasing rate environment, may actually have a negative effect to efficiency. Now, take
into account that many lenders do not want to be in a secondary position behind a primary lender. This starts leaving companies somewhat in a box as to
where, when and how they are going to get the cash to support this growth.
The most common ways we help solve this "good problem to have" situation is by utilizing lending types that are specifically designed for this and
mentioned throughout our site. Asset Based lines of credit, combining inventory with accounts receivable and other assets to establish a higher line of
credit, is one of the best products. Maybe just using the accounts receivables or just inventory to fund the growth is best. Maybe just an unsecured line of
credit will do the job. The real answer will be found by looking at how the company is made up, what it has to offer, how ratio's are as it relates to cash need
vs collateral and or cash flow and more. One will also see the equipment leasing and buying come into the picture for companies that build products and
just need to build more or add another production line. We will be glad to give upfront free consulting to companies that find themselves in a great growth
period needing cash. We have worked for years to bring partners to the table that are among the best in the industry to work alongside you during this
cycle. They will grow along with you and guide you professionally. This is what we do. You can find applications for some of these products within the site
and we always look forward to talking with you!
 |  |  |  |  |  |  |  |  |  |  |  |