Running a business can be just as challenging as it is rewarding. Not even the most successful business owners can claim that they have never found themselves in an urgent and unexpected need of funds. If you happen to be going through a phase like that, here are three suggestions to consider.
Sell Your Car(s)
If you own several cars of any make and model, consider selling a few to meet your immediate need for funds. In case you have one or more exotic sports cars in good condition, you may need to sell just one. Then again, it entirely depends on the car’s make, model, year, mileage, and of course, the buyer. For example, well maintained Lamborghinis and Ferraris tend to hold their resale value quite well.
Unfortunately, finding a genuine buyer who will give you a fair price is not easy when you are in a hurry. There is a reliable solution to this problem though. Just get a fair estimate on your luxury car’s potential resale value by filling out this form on Sell Your Lamborghini. Once you reach an agreement, the whole process will be completed in the shortest time possible.
Take Out an Asset-Based Loan
There are several different types of asset-based loans, but they are all built around the same core idea of a loan that’s secured by a collateral. This collateral could be any one or more assets that hold financial value. Examples include luxury watches, exotic cars, real estate, jewelry, etc. They are also called secured loans because the lender does not technically stand to lose any money, even if the borrower fails to pay in time.
A lender will estimate the value of your collateral and your maximum approved loan amount will be a little lower than the collateral’s estimated value. The two main advantages of asset-based loans are that you will almost always be approved, and the money transfer will be quick. The two main disadvantages of collateral-based loans are the high rates of interest and the chance of losing the collateral permanently.
Liquidate Emergency Funds or Long Term Investments
Every business should have money saved in an emergency fund from day one. If the need for funds is urgent, break into your company’s emergency fund and stabilize the situation. Once things improve, you should immediately start a new emergency fund for future urgencies.
If you don’t have an emergency fund, or in case the money in it proves insufficient, go through your company’s various capital investment plans. List down the long-term investments that can be liquidated to solve the present problem. Most securities can be liquidated for cash during emergencies, but you will have to pay a fee/penalty for breaking the agreement.
Whether you take out a loan, sell your Lamborghini, or liquidate a portion of your assets, be wary of how much time each of those steps might take. If it ends up taking too long, you may not be able to meet your financial obligations to the business in due time.