{"id":3135,"date":"2017-12-28T08:00:18","date_gmt":"2017-12-28T13:00:18","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=3135"},"modified":"2026-02-12T05:31:29","modified_gmt":"2026-02-12T10:31:29","slug":"financing-your-business-now-and-in-the-future","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/financing-your-business-now-and-in-the-future\/","title":{"rendered":"Financing your business \u2013 now and in the future"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tFinancing your business \u2013 now and in the future\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2017-12-28T08:00:18-05:00\">December 28, 2017<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Financing your business \u2013 now and in the future\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/financing-your-business-now-and-in-the-future\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/geniwhitehouse\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/01\/geni-whitehouse.jpeg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Geni Whitehouse<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>As you grow your business, it\u2019s important to keep one eye on the bottom line and the other on your bank account balance. You have inventory to buy, payroll checks to cut, and equipment to purchase. With all of these drains on your bank account, you might need a cash infusion to stay afloat. There are a number of different ways to fund your short or long term cash flow needs, but you need to seek out the best fit for your business.<\/p>\n\n\n\n<p>Here\u2019s how to find the right funding source:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong> Determine the nature of the shortage.<\/strong>Is the need short term or long term? Short term cash shortages could be the result of recurring, seasonal swings. If you need to make a large investment in October to buy inventory you will sell in November and December, you have a short-term need. If, on the other hand, you need to buy a piece of equipment so you can increase your production by 10% over the next five years, you have a long-term need.<\/li>\n\n\n\n<li><strong> Compare your financing options.<\/strong><\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type of Funding<\/strong><\/td><td><strong>Short or Long Term<\/strong><\/td><td><strong>Repayment<\/strong><\/td><td><strong>Security<\/strong><\/td><\/tr><tr><td>Line of&nbsp;credit<\/td><td>Short-term<\/td><td>Interest&nbsp;only is paid over the term of the loan, principal repaid on demand<\/td><td>Generally &nbsp; unsecured<\/td><\/tr><tr><td>Mortgage loan<\/td><td>Long-term<\/td><td>Principal and interest repaid over a specified number of years<\/td><td>Secured by the associated asset<\/td><\/tr><tr><td>Factoring \u2013 &nbsp; lender advances funds against the outstanding balance of your accounts receivable<\/td><td>Short-term<\/td><td>Repaid by&nbsp;your customers directly to the factoring company<\/td><td>Secured by accounts &nbsp; receivable balances<\/td><\/tr><tr><td>Leasing<\/td><td>Long-term<\/td><td>Repaid monthly<\/td><td>Secured by&nbsp;the asset\u2014agreement could include an &nbsp; option to buy at the end of the term<\/td><\/tr><tr><td>Equity&nbsp;investment- a partner contributes capital in exchange for a share of your &nbsp; equity in the business<\/td><td>Long-term<\/td><td>Repaid upon the sale of the business<\/td><td>Secured by a percentage of your business profits and net assets<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li><strong> Match the need with the right type of financing.<\/strong>Try to fund a short-term need with a short-term loan and long-term reserve debt for investments that will add value to your business over time.<\/li>\n\n\n\n<li><strong> Other considerations.<\/strong>When comparing your financing options, consider the repayment terms, any required security, loan covenants, and the relative interest rates charged. Ask about regular reporting requirements and any special supplemental information you need to disclose to the lender. You may also want to consider your relationship with the lender and the nature of the loan application process. Be sure to ask about any other fees that might be charged.<\/li>\n<\/ol>\n\n\n\n<p>No matter how rosy your cash flow is today, always have a plan for covering your future cash flow needs. You want to have plenty of options if the need arises. No one wants to find themselves in a crisis that leads to high aggravation and potentially higher costs.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As you grow your business, it\u2019s important to keep one eye on the bottom line and the other on your bank account balance. You have inventory to buy, payroll checks to cut, and equipment to purchase. With all of these drains on your bank account, you might need a cash infusion to stay afloat. There [&hellip;]<\/p>\n","protected":false},"author":392,"featured_media":3160,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[43],"tags":[299],"business_type":[41],"lilypad":[],"context":[],"industry":[56,52,58,54,59],"persona":[98],"imagine_tag":[233],"coauthors":[710],"class_list":["post-3135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","business_type-growing-business","industry-ecommerce","industry-food-beverage","industry-nonprofit","industry-retail","industry-travel-hospitality"],"sage_meta":{"region":"en-us","author_name":"Geni Whitehouse","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/12\/fundingresources.jpg","imagine_tags":{"233":"Medium Businesses"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/392"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=3135"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/3135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/3160"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=3135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=3135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=3135"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=3135"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=3135"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=3135"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=3135"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=3135"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=3135"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=3135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}