The Role Of Same Day Funding In Expanding Your Production Capabilities

The world of business has always been ultra-competitive but the fast pace of the modern commercial environment means that organisations need immediate access to funds in order to capitalise on growth opportunities and boost production. That could be taking on new staff, accessing the latest machinery or simply staying on top of operational expenses. But whatever the need, the solution is being financially agile.

Of course, this is not always possible for some small and medium sized businesses. Financial obstacles such as late payment of invoices, unexpected expenses, staff shortages and more can easily eat into available capital, leaving cash flow looking a little perilous and hindering production capability.

That’s why same day business funding can play such a pivotal role in helping small businesses to meet demands and expand their capabilities in the quickest and most efficient way possible. Traditional financing options can present challenges to the fast pace of modern business, often taking weeks for approval, but same day loans can see funds in the bank within 24 hours.

Same Day Funding Explained

Same day funding refers to the types of business loans that can be approved and distributed within the same 24 hour period. This rapid financial option is ideal for many types of business who need fast access to cash, but is particularly beneficial to production-based businesses who cannot afford costly downtime periods. So, just how can same day funding help businesses expand their production capabilities?

Investment In Equipment And Tech

Production-based businesses are reliant on machinery and equipment to keep processes rolling. However, large upfront costs can make purchasing difficult, especially if new machinery is needed at unexpected times. Not only does the latest machinery and technology allow for greater efficiency but it can also help to reduce maintenance times and costs. But SMEs can struggle with the costs. The British Business Bank reports that 38% of UK SMEs cited access to finance as a major obstacle to investing in tech, which points to same day loans as a key solution.

Scaling Operations

If demand increases it can be very hard for businesses to keep up. Hiring new staff and accessing new machinery can be very costly, meaning that businesses can miss out on opportunities to scale and grow. A Federation of Small Businesses study showed that two out of three small businesses struggle with cash flow limitations when trying to expand. Access to fast and available funding allows businesses to meet demand, even if this happens in short time frames.

Bulk Discounts

For SMEs even the smallest margins count. While large firms have the buying power to get bulk discounts, these are often not available to smaller firms who then end up paying more for materials and passing on costs to customers. A Barclays survey found that almost a third of small businesses missed out on cost saving opportunities thanks to a lack of funding. Having access to quick cash allows businesses to seize these deals when they come along, reducing operating costs and making financial sense in the long run.

Positive Cash Flow And Stability

Cash flow is a key indicator of the health of a business. Without it, businesses can often fail to meet operational expenses, experience payroll issues, struggle to make payments and even close down. Same day funding provides SMEs with a valuable lifeline to keep cash flow stable and the business moving.

You can find out more about fast easy business loans by getting in touch with the Century Business Finance team.

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