| Many times a small business will face a short term | | | | much help for short term emergencies. The |
| financial emergency. Emergency small business | | | | approval process is normally too drawn out to |
| loans are a way, but often they will make the | | | | help quickly. There are also lenders such as the |
| problem worse and not better. | | | | thriving pay day loan industry that seem to offer |
| A good business operating plan should include | | | | a quick out. These need to be approached with a |
| some kind of provision for emergency cash flow | | | | great deal of caution. Some people compare |
| situations. A line of credit is a very good method | | | | coping with short term cash flow problems by |
| to deal with short time emergencies, and a cash | | | | taking on very high interest loans with a short |
| reserve is even better. However, this is really | | | | repayment schedule to be not unlike treating |
| much like telling someone that locking the barn | | | | brush fires by spraying them with gasoline. |
| door is a good idea after the horse has already | | | | It might not be a bad idea to make a review of |
| escaped. Emergency situations, by definition, are | | | | family and friends for the purpose of short term |
| just those times when preplanning has failed. So, | | | | emergency small business loans. They might be |
| what is the best source of emergency small | | | | the ones with the most confidence in you and |
| business loans? | | | | your business, and they might be the most willing |
| The place to start would be your normal lending | | | | to extend both generous terms and a longer |
| institution. Banks are not unfamiliar with | | | | repayment time. |
| emergency situations regarding small business. The | | | | There are many causes for short term cash flow |
| fact that you might be facing a cash flow | | | | problems in a small business. If these causes are |
| problem is not going to make the bank loan | | | | not serious fundamental flaws in the business |
| officer really comfortable, but if your explanation | | | | operation, but truly fixable emergency situations, |
| and your overall business prospects are both | | | | an emergency loan should be considered. Still, the |
| good, he might be willing to take the risk. This is a | | | | best way to deal with a cash flow situation is to |
| time when a secured loan might be best, so if | | | | improve operations and increase the cash flow. |
| you have some collateral that can be offered that | | | | The second best way is to have a line of credit |
| might ease the way to approval. | | | | already established or a cash or asset reserve |
| Government loans are usually not going to be | | | | already earmarked for emergencies. |