I have a new small business less than 1 year old. As a small business that travels all around the country. I incur a lot of large reimbursable expenses on projects that are Net-30, 60, and even 90. This eats into my cash in a dangerous way. It makes it hard just to pay myself and maintain. I have contacted my bank to offer a line of credit of $5,000. I was denied. I am interested in other avenues in which to accomplish my goal of putting my expenses into a short-term line of credit. I have thought of invoice factoring. Is there any other ideas?
Instead of Invoice factoring, I think you should focus on the problem on why project expenses are weighing you down. What are the factors that lead you to it? Are there unnecessary project activities which are currently included in your small business that are consuming a lot of your expenses?
Expenses are inevitable when you are into business, but you can cut them by laying all the unnecessary activities in running your business.
You have mentioned that you travel around the country, then transportation expenses are one of the main reasons why expenses weighs you down. I propose that if this is so, I think you should plan of your itinerary very well by cutting your several visits. What I am saying is, instead of paying a visit of more than twice a month to attend your business in one location why not make a plan that could make you visit just only once. By doing this, you can now cut the transportation expenses that burdens you somehow.
Answered 5 years ago
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