7 Quick Ways to Increase Cash Flow
Business owners across all industries face rising debt and high monthly payments. Instead of constantly borrowing, strategic financial moves can immediately boost your cash flow. Here are seven smarter and quicker ways to free up working capital today:
1. Lower Your Current Interest Rate
Refinancing your business loan to secure a lower interest rate can significantly reduce your monthly payments. Even a modest rate reduction—such as 50 basis points—translates to thousands of dollars saved annually. With strong credit and business equity, you may qualify for better terms than when you first secured your loan.
2. Lengthen the Term of Your Debt
Extending your loan term can drastically reduce monthly payments, giving your business more financial flexibility. By stretching repayment over a longer period, you gain immediate cash flow relief while keeping your operations running smoothly.
3. Pay Off Seller Notes from a Previous Acquisition
Many business owners acquire their businesses through seller-financed deals, often with high-interest rates and short repayment periods. Refinancing these obligations with a longer-term, lower-rate loan can reduce immediate cash outflows and improve profitability.
4. Refinance Your SBA Loan with a New Conventional or SBA Loan
If you have an existing SBA 7(a) loan, refinancing with a new SBA loan or a conventional loan can help you take advantage of better terms. A new loan with a longer repayment term and a lower interest rate means lower monthly payments and greater cash flow for your business.
5. Convert an SBA 7(a) Loan into an SBA 504 Loan
If your SBA 7(a) loan was used for real estate or large equipment purchases, transitioning to an SBA 504 loan can provide substantial savings. The SBA 504 program offers fixed, lower interest rates and longer repayment terms—freeing up thousands in monthly cash flow for your business.
6. Acquire a Competitor or Another Location
Expanding your business by acquiring a competitor or additional location can lead to significant long-term financial benefits. By leveraging financing options, you can grow your market share, increase revenue, and improve operational efficiencies. Whether it’s acquiring another business or expanding into a new market, strategic growth can boost profitability and cash flow.
7. Add Additional Services to Increase Revenue
Expanding your service offerings can generate additional income and attract new customers. For example:
• Introduce premium or specialized services to appeal to higher-value clients.
• Offer loyalty or subscription programs to encourage repeat business.
• Add complementary services that align with your core business.
• Expand your service areas or offer mobile services for added convenience.
Should you know of a friend or colleague who could benefit from these planning strategies, please don’t hesitate to reach out. We offer a referral partnership program you won’t want to miss!
