How Flexible Payment Terms Can Benefit Your Business
*This post is from CMB partner Essex Lease. Visit them for flexible lending solutions.
In business, good planning is essential. Business owners need to be prepared to manage everything from typical seasonal ebbs and flows to major unforeseen emergencies like a global pandemic.
So whether your business is looking to unlock working capital, finance new equipment or restructure existing debt, working with a lending partner with the ability to offer flexible payment terms that match your business cycles is key.
And while cash flow problems are not uncommon, the good news is that there are options for business owners who need a more customized approach.
Let’s look at how flexible payment terms can benefit your business, regardless of your industry.
1. Business is Rarely a Linear Path Forward
In business, very few things progress in a linear path forward, and even the best-laid plans won’t always go the way you expected.
Whether you’re dealing with seasonality, long invoicing cycles, or an economic downturn, your business won’t be resilient to the inevitable fluctuations if you don’t have a lending partner that is ready to meet you where you are.
2. Financing Agreements Need to Match Your Cash Flow
The right lending partner will ensure that your financing agreement is structured in a way that works for you and your business.
A flexible lending partner can design terms that consider the lifespan of the equipment, your typical business cycles, and a buffer to help manage the unexpected. They’ll work with you to determine whether it makes sense to finance, lease or rent equipment.
The point isn’t so much what you go with; it’s that you have options and a partner who can help you choose the right path forward.
3. Lending Decisions Should be a Conversation
Traditional banks are risk-averse, so they’re rarely able to provide truly flexible lending solutions.
This can result in everything from rigid payment terms that leave you cash strapped to denying financing for an asset that could help your business unlock significant growth opportunities.
Ultimately, lending should be a conversation and a negotiation. Having flexibility is key to making that work.
4. You Need Room to Grow
Every business owner knows that cash flow is directly related to business growth.
Without some flexibility built-in to your lending relationships, opportunity might knock; but you can’t answer.
5. Your Lending Partner Should be Looking at the Full Picture
Business owners know that the whole story of their business is rarely captured in their financial statements alone. The point is getting to know the story behind the numbers.
The right lending partner will offer flexible solutions that actually for your business because they take the time to understand the full picture.
If you think your business is ready to take advantage of flexible financing, it’s time to look at working with an alternative lending partner like Essex Lease Financial.
We don’t want to brag, but for over 35 years, we’ve been changing the game for businesses across Canada by removing obstacles that prevent them from accessing their best financing options. We pride ourselves on thinking ‘outside-the-box’ for our customers by creating custom solutions that reflect their needs.
If you’re ready to work with the financing experts that offer exceptional services, and a dedicated, personal touch, contact Essex today to get started!